Trump-Musk Rift Sends Tesla Stock into Turbulence as Investor Warns of Unpriced Risks

Tesla's stock faced double-digit declines last week after Elon Musk and Donald TRUMP publicly clashed over policy and personal differences. The tension escalated when Trump's "Big, Beautiful Bill" was labeled a "Disgusting Abomination" by Musk, with the Tesla CEO particularly aggrieved by the removal of EV tax credits—a move that directly impacts Tesla's pricing competitiveness.

Though shares partially rebounded Friday, investor Joseph Parrish argues the market underestimates the long-term implications. "Tesla's premium valuation multiples don't account for this kind of reputational and political risk," he notes, highlighting the automotive segment's vulnerability as Tesla's revenue cornerstone.

The feud underscores how personality-driven volatility in tech leadership can cascade into shareholder value destruction—a dynamic crypto markets know all too well from figures like Musk himself, whose tweets have repeatedly moved digital asset prices.