MediaPemalang.com – Tesla (TSLA) shares experienced a brutal decline of up to 14 percent in one trading session after President Donald Trump threatened to revoke all subsidies and government contracts belonging to Elon Musk. This decline wiped more than 150 billion US dollars from the electric vehicle company’s market capitalization.
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Investors who for years relied on Musk’s close relationship with the White House as a positive catalyst are now facing a harsh reality: Tesla’s strongest ally in government is actually his biggest threat.
Why Are Investors So Scared?
Trump’s threat is not just ordinary political bluff. The US federal government controls multibillion-dollar contracts for SpaceX, electric vehicle subsidies worth US$7,500 per unit, and regulatory approval for Tesla’s autonomous taxis (robotaxi).
“Elon probably gets more subsidies than any human in history, far more. Without subsidies, Elon might have to close up shop and go home to South Africa,” Trump wrote in Truth Social.
Measurable Financial Impact
The numbers are dire for Tesla shareholders. A 14 percent drop in one trading day wiped out more than $150 billion in market capitalization. The worst two-day performance since November 2021. Shares are down more than 20 percent in the last five days.
Wall Street analyst Dan Ives of Wedbush Securities noted that the Musk-Trump fight “quickly escalated into a high school buddy feud” that is now “moving rapidly downward.”
What Can Investors Do?
Despite the tense situation, Ives maintained his outperform rating and $500 price target for Tesla. The reason is pragmatic: ultimately, Musk needs Trump for autonomous regulation and Trump needs Musk in the AI race against China.
However, analysts also warn that the regulatory environment for Tesla could change significantly if the feud continues. Approval of Tesla’s robotaxi and cybercab services is under the control of the Trump administration.
For Indonesian retail investors who own Tesla shares through international brokers, this situation is a harsh reminder that political risks can hit even the biggest technology stocks in a matter of hours.
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