Trump vs Musk! Wall Street is dumbfounded "Cannot understand, utterly foolish, a disaster"

Elon Musk and Trump have completely "torn apart," and this "war of words" has also dragged Tesla down.

Due to the disagreement between Musk and Trump over proposed tax legislation resulting in a public spat, Tesla's stock price plummeted 14% overnight, evaporating $153 billion in market value, setting a record for the largest single-day drop. According to S3 Partners data, short sellers profited $4 billion from this decline.

Currently, Tesla's stock price has dropped 41% from the historical high set in December.

This stock price trend exposes Tesla's extreme dependence on Musk's personal image.

Previously, Trump's electoral victory had once driven Tesla's stock price up, but as Musk became embroiled in political controversies, the company's prospects have been overshadowed.

Wayne Kaufman, Chief Market Analyst at Phoenix Financial Services, commented that the whole situation is simply "stupid," and someone in such a high position should understand, "Don't act like a middle schooler."

Kaufman analyzed:

“For Tesla, the particularly difficult thing is that you cannot separate the company's value from him (Musk).”

“Tesla's value is inextricably linked to Musk. When he is seen as a visionary, the stock price soars; when he is embroiled in controversy, the stock price crashes. Now Musk has become the problem itself, so the stock price drop is not surprising.”

Investor Confidence Shaken, Wall Street Begins to Sing the Blues

Tesla's electric vehicle business was already weakening, and Musk's political stance and controversial behavior have led some consumers to develop aversion to its brand. Now, Trump's threats may directly impact the government subsidies and contracts that Tesla relies on, further squeezing profit margins.

Adam Sarhan, CEO of 50 Park Investments, believes:

“Clearly, Musk and Trump are no longer aligned. We don't know what consequences this will bring, and that's why people are selling off. There won't be a clear solution to this situation. If things escalate, the ultimate winner will be Trump, and the impact on Tesla's stock price is still unknown. I think it could indeed harm Tesla's profitability.”

“Investing in Tesla now is purely gambling. Even if the stock price drops, Tesla's valuation is still high.”

Ross Gerber, CEO of Gerber Kawasaki Wealth and Investment Management, criticized:

“This is a disaster for Musk. I can't imagine a rational businessman turning Trump into an enemy. The Tesla board has no intention of protecting shareholders; the only way to protect themselves is to sell stock. I sold some Tesla shares today, and we have been reducing our holdings for years.” Dave Mazza, CEO of Roundhill Financial, believes:

“There is a clear bearish outlook in the short term. This conflict adds unnecessary complexity for Tesla. As Robotaxi is approaching, people are ignoring the issues with car sales and are willing to impose long-term constraints on this. Now, if Robotaxi becomes a target of attack, and Musk himself also becomes a target, the market's 'dream premium' for the company will significantly shrink, and today's decline is proof of that.”

The key point is that Tesla's valuation logic has long been built on Musk's "innovator" halo and future vision (such as autonomous taxis), rather than fundamentals. Wayne Kaufman pointed out sharply:

“If Tesla truly had immense intrinsic value, the stock price wouldn't collapse like this. It has never traded on fundamentals.”