Tesla Stock Plunges 8% After Musk-Trump Fallout and EV Tax Credit Threat

Tesla Stock Plummets Over 8% Amidst Musk-Trump Feud and EV Tax Credit Uncertainty Tesla's stock took a significant hit on June 5th, 2025, plunging over 8% within a two-hour period. This dramatic decline is attributed to two key factors: the public fallout between Elon Musk and Donald Trump, and the anticipated elimination of crucial electric vehicle (EV) tax credits. The announcement regarding the removal of these credits, heavily relied upon by Tesla, sent shockwaves through the market. Adding to the turmoil, the ongoing public dispute between Musk and Trump further eroded investor confidence. "Tesla stock is now down more than 8% in the past two hours," stated Aaron Parnas, a financial analyst who captured this news in a short video. "It's getting worse for Elon Musk's company." Parnas highlighted the dual impact of the political decision and the negative publicity, creating a perfect storm for Tesla's stock price. The situation underscores the delicate balance between business and politics, particularly in the volatile world of electric vehicles. The market's reaction highlights the significant impact political decisions can have on the financial performance of major corporations. The coming days will be crucial in determining the extent of the damage and Tesla's response to this unprecedented challenge.