Tesla Stock Plummets 12% As Musk's Feud With Trump Escalates

Core Viewpoint - Tesla's stock experienced a significant decline of 12.3% amid escalating tensions between Elon Musk and President Donald Trump, with Musk publicly criticizing Trump's policy bill as "massive, outrageous," and "pork-filled" [1][2]. Stock Performance - Tesla's shares fell to approximately $291.18, marking a notable drop as losses intensified following Trump's remarks [2]. - The decline in Tesla's stock has resulted in a reduction of Musk's net worth by $17.2 billion, bringing it below $400 billion to $398 billion [3]. Sales Performance - Tesla's sales have also faced challenges, with a reported decline of over 45% in the U.K. in May, contrasting with a 28% increase in sales across the industry [6]. Company Developments - Tesla is set to launch a robotaxi service in Austin, Texas, featuring around 20 self-driving Model Y vehicles, despite ongoing scrutiny regarding the safety and technical data of its self-driving software [7]. - The National Highway Traffic Safety Administration has initiated several investigations into Tesla's Autopilot feature, including recent probes related to fatalities linked to its Full-Self Driving software [8]. Background Context - Musk's recent criticisms of Trump's policy bill follow his previous role in the Trump administration, where he led the Department of Government Efficiency. Despite their past collaboration, Musk's focus on government duties has drawn criticism from analysts regarding his commitment to Tesla [9].