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New York Post
75 days

Tesla shares tumble as Trump, Musk escalate attacks: ‘Elon's politics continue to harm stock'

1. Tesla shares dropped over 5% amid Musk's criticism of Trump's tax legislation. 2. Trump's comments highlight a strained relationship with Musk, affecting Tesla's stock. 3. Ending of the $7,500 EV subsidy could cost Tesla $1.2 billion in profits. 4. Musk's political actions could be alienating potential Tesla buyers in key markets. 5. Tesla's stock is down 22% this year, despite being the highest valued automaker.

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FAQ

Why Bearish?

Musk's criticism of Trump and potential loss of subsidies suggests uncertain future for Tesla. Historically, political shifts have influenced Tesla's stock volatility, as seen after Musk's previous Trump endorsement led to significant stock fluctuations.

How important is it?

The ongoing political discourse and potential legislative impacts could severely curtail Tesla's revenue. Given the stock's current volatility and reliance on government incentives, investors are likely to react strongly.

Why Short Term?

Immediate market reactions suggest short-term price declines due to potential loss of EV incentives. This is evidenced by previous rapid shifts in Tesla's stock corresponding to political changes or adverse news.

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