Tesla falls for six consecutive trading days... Impact of Musk-Trump conflict

Over the past six trading days, Tesla's stock has shown a notable decrease. The ongoing disagreement between CEO Elon Musk and U.S. President Donald Trump has been highlighted as a significant factor.

On the 1st of the month (local time) at the New York Stock Exchange, Tesla's stock ended the session lower than the previous day, falling by 5.34% to close at $300.71. This decline has persisted since the 23rd of the previous month.

Since reaching $295.14 on the 6th of last month, Tesla's stock has faced the risk of falling below $300, with the closing price causing the market capitalization to drop below $1 trillion to $968.6 billion.

The decrease is attributed to the strained relations between Musk and President Trump. Musk has criticized President Trump's legislative bill, which proposes the elimination of eco-friendly support policies and substantial tax cuts, describing it as "insane spending."

In retaliation, President Trump, through his 'Truth Social' platform, suggested that government subsidies for Musk's companies should be reduced. He also mentioned the potential involvement of the Department of Government Efficiency (DOGE) in overseeing Elon Musk.

Musk, who managed budget cuts and restructuring as the leader of the Department of Government Efficiency during Trump's second term, expressed his opposition to Trump's policies shortly after his special public service duties concluded.

Analysts suggest that if the dispute between Musk and Trump escalates beyond verbal disagreements to the reduction of corporate subsidies or contract evaluations, it could pose direct challenges to Tesla's growth prospects and profitability.