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

Tesla's share price has seen a notable decrease over the past six trading sessions. Analysts have pointed to the ongoing dispute between Elon Musk and Donald Trump as a significant factor contributing to this trend.

On the first day of the month, according to local time at the New York Stock Exchange, Tesla shares closed lower than the previous day, showing a 5.34% decline to $300.71. This declining trend, which initiated on the 23rd of the prior month, has persisted for six trading days straight.

Previously, Tesla shares hit $295.14 on the 6th of the last month. As of the most recent closing price, the shares dropped to a level that threatens to fall below the $300 mark, leading to a market capitalization of $968.6 billion, jeopardizing its status above the $1 trillion threshold.

The friction between Elon Musk and President Trump is a significant backdrop to this decline. Musk has openly criticized Trump's legislative proposals, particularly those aiming to overturn environmental support measures and introduce significant tax reductions, labeling them as "insane spending bills."

In retaliation, Trump took to his social media platform, 'Truth Social,' to argue that the subsidies provided to Musk's companies should be curtailed. Moreover, he suggested the potential need to reduce government contracts with Musk, implying that the Department of Government Efficiency (DOGE) might need to take charge of the situation.

Musk, who had played a pivotal role in cutting spending and restructuring as the head of the Department of Government Efficiency during Trump's second administration, has maintained a critical view of Trump's policies following his special public service role.

Experts suggest that if the ongoing conflict escalates from mere verbal disputes to actual reductions in corporate subsidies or government contract reviews, it could impose substantial challenges on Tesla's prospective growth and profitability.