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

In recent trading sessions, Tesla's stock has experienced a pronounced downturn, continuing for a sixth day in a row. The friction between Tesla's CEO, Elon Musk, and the U.S. President serves as a pivotal factor fueling this decline.

As of the 1st, in trading at the New York Stock Exchange, Tesla's stock concluded the day at a lower point than the previous one, marking a 5.34% decrease to settle at $300.71. This decline perpetuates the trend observed since the 23rd of the previous month, sustaining a six-day streak of losses.

After reaching a previous level of $295.14 on the 6th of the last month, Tesla's stock has neared a critical threshold of $300, as reflected in its closing price. This has resulted in a market capitalization that now hovers at $968.6 billion, dipping below the once formidable $1 trillion mark.

The catalyst for this downturn lies in the growing tensions between Musk and President Trump. Musk has voiced strong opposition to a legislative proposal championed by Trump, which aims to roll back eco-friendly initiatives and implement significant tax reductions, referring to it as "a deranged spending bill."

In retaliation, Trump took to his platform, 'Truth Social', to suggest that the subsidies extended to Musk's enterprises should be curtailed. He further implied potential cuts to government contracts, suggesting that "the Department of Government Efficiency (DOGE) may be needed to oversee Elon."

Musk, once at the helm of the Department of Government Efficiency during Trump's administration, where he led initiatives for cost-cutting and restructuring, has been openly critical of the President's policies following his stint in public service.

Analysts suggest that if the Musk-Trump conflict escalates beyond verbal sparring to tangible actions like the reduction of corporate subsidies or the reevaluation of contracts, it could significantly strain Tesla's prospects for growth and profitability.