Tesla takes a hit as CEO's relationship with President Trump cracks

Tesla electric cars at a store in San Mateo, California, USA. (Photo: THX/TTXVN)

The June 5 spat began when Mr. Trump expressed frustration with Mr. Musk in front of reporters in the Oval Office after days of the Tesla CEO publicly opposing Mr. Trump’s massive tax bill that was making its way through Congress .

Meanwhile, on his social media platform X, Mr. Musk argued that Mr. Trump would not have been elected president without his support.

Mr Trump has ultimately threatened to cut off key government contracts and subsidies to Mr Musk’s businesses.

In response, Tesla CEO announced that SpaceX will immediately decommission the Dragon spacecraft.

The developments mark a clear rift in a relationship that was one of the highlights of Mr. Trump’s second term.

Tesla shares fell 14.26% on June 5, the biggest drop since March and the electric car company’s second-worst day since September 2020. The company’s market capitalization fell more than $150 billion, a record drop.

Mr. Musk’s relationship with the Trump administration has been seen as a boon for his businesses, especially given SpaceX’s close collaboration with NASA, as well as the National Highway Traffic Safety Administration’s ability to facilitate testing of Tesla’s self-driving robotaxis.

However, the decline in demand in the European market and recent protests at Tesla showrooms in the US show the consequences of Mr Musk's political involvement.

Tesla is scheduled to conduct a large-scale robotaxi test in Austin on June 12. Much of the company’s value depends on whether it can perfect self-driving technology for robotaxi and personal cars.

Meanwhile, Alphabet's Waymo is still leading in the self-driving car field, with about 250,000 robotaxi trips per week./.

According to VNA

Source: https://baothanhhoa.vn/tesla-hung-don-khi-moi-quan-he-giua-ceo-voi-tong-thong-trump-ran-nut-251167.htm