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

Tesla's stock has notably decreased, continuing its downward trajectory for six straight trading days, with the discord between CEO Elon Musk and U.S. President Donald Trump identified as a significant factor influencing this trend.

On the 1st of this month (local time), trading at the New York Stock Exchange saw Tesla's shares close at a lower value than the previous session, specifically a 5.34% decrease, settling at $300.71. This decline, which commenced on the 23rd of the prior month, has been ongoing for six consecutive sessions.

Since reaching $295.14 on the 6th of the previous month, Tesla's stock has faced the risk of dropping below the $300 threshold, with its market capitalization slipping beneath $1 trillion, now valued at $968.6 billion.

The stock's downturn is largely linked to rising tensions between Musk and President Trump. Musk has sharply criticized the legislative measure pushed by Trump, referring to it as an "insane spending bill," which proposes the elimination of environmentally-friendly support policies along with substantial tax reductions.

President Trump retaliated on his 'Truth Social' platform, suggesting a reduction in government subsidies for Musk's enterprises. He hinted at reevaluating government contracts, stating, "We might need the Department of Government Efficiency (DOGE) to take over Elon."

During his tenure as the head of the Department of Government Efficiency in Trump's second term, Musk advocated for budget cuts and organizational restructuring. Post his special public service role, Musk expressed disapproval of Trump's policy direction.

Analysts suggest that if the Musk-Trump conflict escalates beyond rhetoric to tangible cuts in corporate subsidies or a review of contracts, it could impose direct challenges on Tesla's future growth prospects and profitability.