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

The value of Tesla's stocks has decreased significantly, with a decline observed over six consecutive trading sessions. The dispute involving CEO Elon Musk and the U.S. President, Donald Trump, is cited as a primary factor.

On the first day of the month (local time), Tesla's shares closed at a lower price compared to the previous trading day on the New York Stock Exchange, marking a 5.34% decrease to $300.71. This declining trend commenced on the 23rd of the previous month and has lasted for six trading days without interruption.

Having reached $295.14 on the 6th of the prior month, Tesla's stock price is now at risk of falling below $300, as indicated by the closing price. Consequently, the market capitalization has diminished below $1 trillion, settling at $968.6 billion.

The decline is attributed to the friction between Musk and President Trump. Musk has openly criticized a legislative proposal backed by Trump that seeks to repeal eco-friendly policies and introduce significant tax cuts, referring to it as an "insane spending bill."

President Trump responded via his social media platform, 'Truth Social', suggesting that the government subsidies provided to Musk's businesses ought to be decreased. He also implied that there might be a need to reconsider government contracts, stating, "We might need the Department of Government Efficiency (DOGE) to take over Elon."

Musk, who spearheaded cost-cutting and restructuring efforts as the head of the Department of Government Efficiency during Trump's second term, has maintained a critical view of Trump's policies since concluding his special public service.

Analysts suggest that if the Musk-Trump conflict escalates beyond verbal disputes to actual reductions in corporate subsidies or revisions of contracts, it could have a direct impact on Tesla's growth prospects and profitability.