Tesla ($TSLA) stock dropped by about 5% before market opening today, with the political tension between Elon Musk and President Trump delivering a direct blow to the market. Amid political conflicts and amplified rumors surrounding Musk's political challenges, investor sentiment is significantly shaken.
The controversy began when Musk directly criticized the 'Big Beautiful Bill' proposed by President Trump. He threatened to create a **new party** if the bill passes, standing against its supporters. This immediately provoked a counterattack from Trump. Through the social media platform 'Truth Social', he criticized government subsidies for electric vehicles, stating that "Elon is the person who has received the most subsidies in history". He further claimed that without subsidies, Tesla would need to close its doors and return to South Africa, and that rocket launches and electric vehicle production would cease, saving the United States significant money.
These statements did not remain mere rhetoric but spread as a potential reduction in electric vehicle subsidies, increasing market anxiety. Musk remained defiant, responding that he would be fine with subsidies being cut immediately. However, the repercussions did not subside easily. Some of Trump's camp even mentioned the possibility of 'expelling' Musk, maintaining a hardline atmosphere.
Meanwhile, the possibility of Musk founding the 'America's Party' has surged to 40% on the predictive market Kalshi, bringing the potential for actual political entry to the surface. Experts view this beyond a simple political conflict, seeing it as an **economic-political risk** where technology industry and policy are intertwined.
This collision is evaluated as an issue that could significantly impact not just Tesla, but the entire electric vehicle ecosystem and even the cryptocurrency industry. Trump's comment, "Should we consider DOGE (Doge Coin)?", further added to the controversy. Doge Coin (DOGE) is a representative **meme coin** that Musk has repeatedly mentioned publicly, driving its volatility.
This conflict is not merely a battle of pride between a politician and a businessman. It carries more weight as a sensitive issue traversing subsidy policies, technology industry ecosystem, and capital markets as a whole.
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