Tesla Stock Plummets 17% As Musk's Feud With Trump Escalates

Core Viewpoint - Tesla's stock experienced a significant decline of over 17% amid escalating tensions between Elon Musk and President Donald Trump, with Musk publicly criticizing Trump's policy bill and Trump responding to the criticism [1][2]. Stock Performance - Tesla's shares fell by 17% to approximately $275.36 as of 3:25 p.m. EDT on Thursday, with losses intensifying following Trump's remarks [2]. - The decline in Tesla's stock resulted in a reduction of Musk's net worth by $17.2 billion, bringing it below $400 billion to $398 billion according to Forbes [3]. Sales Performance - Tesla's sales have also seen a downturn, with a reported drop 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 aspects of its self-driving software [7]. - The National Highway Traffic Safety Administration has initiated several investigations into Tesla's Autopilot feature, including recent inquiries related to two 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 White House, where he led the Department of Government Efficiency. Despite the tensions, both Musk and Trump have indicated that their relationship was previously positive [9].