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

Tesla's stock has fallen consistently over six trading days, largely due to a dispute between CEO Elon Musk and President Donald Trump.

On the 1st, Tesla shares closed lower on the NYSE, down 5.34% to $300.71, continuing the decline that began on the 23rd of last month.

After hitting $295.14 on the 6th of last month, Tesla's shares are now at risk of dropping below $300, reducing its market cap to below $1 trillion.

The stock drop is linked to Musk's criticism of a Trump-backed bill that repeals eco-friendly policies and introduces large tax cuts, calling it "insane spending."

President Trump responded on 'Truth Social,' suggesting cuts to government subsidies for Musk’s companies and hinting at contract reductions, possibly involving the Department of Government Efficiency (DOGE).

Musk, formerly head of the Department of Government Efficiency during Trump's second term, criticized Trump's policies after his public service role ended.

Experts warn that if the Musk-Trump clash leads to subsidy cuts or contract reviews, it could negatively impact Tesla's growth and profitability.