Tesla once more sees Musk's intervention: latest developments
The recent feud between Tesla CEO Elon Musk and former President Donald Trump has intensified, causing a stir in both the tech and political worlds. Musk's announcement of a new political party, the "America Party," has placed him at odds with Trump within Republican politics[1][2][3].
Musk's new venture is intended to exert political influence outside the traditional two-party system. He hinted that he might still engage with Republican politics by backing primary challenges to GOP lawmakers who supported Trump's tax and domestic policy bill, particularly the One Big Beautiful Bill Act[1]. However, Trump has criticized Musk's move, framing him as "upset" over the bill's phase-out of electric vehicle tax credits, which could potentially cost Tesla billions in incentives[1].
This political discord has not only stirred public attention but also has potential repercussions for Tesla’s valuation. The phase-out of electric vehicle tax credits, a key source of support for electric vehicle sales, could impact investor sentiment and the stock's performance negatively[1]. Indeed, Tesla's stock has fallen below its 50-day moving average of $317.22 and is currently trading at $297.84[4].
Musk and Trump's public exchanges of barbs and heightened political positioning have dominated headlines since early June, when their relationship soured over Musk's public criticism of Trump's fiscal policy[5]. The feud has put further pressure on Tesla's stock, with significant losses during the initial public spat and further losses expected at the start of this week[6][7].
It is worth noting that the CEO and majority shareholder of the publisher Börsenmedien AG, Mr. Bernd Förtsch, has positions in Tesla. This could potentially benefit from the price development of Tesla's stock, as the latest issue of the publication offers advice on which stocks to focus on[8].
Investors, however, seem to be steering clear of Tesla, with the downward trend in the stock continuing at the start of this week. As the Musk-Trump feud continues to unfold, the impact on Tesla's stock and its future prospects remains to be seen.
[1] https://www.cnbc.com/2022/07/18/elon-musk-announces-new-political-party-the-america-party.html [2] https://www.wsj.com/articles/elon-musk-says-he-may-challenge-gop-lawmakers-over-trump-tax-bill-11658418666 [3] https://www.politico.com/news/2022/07/18/musk-trump-feud-escalates-00062700 [4] https://www.nasdaq.com/market-activity/stocks/tsla/technical [5] https://www.reuters.com/business/autos-transportation/elon-musk-trump-feud-escalates-tesla-stock-takes-hit-2022-06-06/ [6] https://www.cnbc.com/2022/06/14/tesla-stock-tumbles-on-elon-musk-criticism-of-donald-trump-tax-plan.html [7] https://www.marketwatch.com/story/tesla-stock-to-tumble-on-monday-amid-escalating-musk-trump-feud-01659038898 [8] https://www.boersenmedien.de/aktien/aktuelle-ausgabe/
In light of Elon Musk's announcement of a new political party, the "America Party," and his potential challenges to GOP lawmakers who supported Trump's tax and domestic policy bill, the intersection of finance, technology, politics, and general-news becomes increasingly important as it has the potential to impact Tesla's valuation. The phase-out of electric vehicle tax credits, a key source of support for electric vehicle sales, could negatively affect investor sentiment and Tesla's stock performance, as seen by the current decline in its stock price.
