Shares of Tesla Inc., led by Elon Musk, have taken a significant hit in overnight trading. The decline comes amid Musk’s ongoing feud with President Donald Trump, which started over the “Big, Beautiful Bill.” This bill has major implications for Tesla, as it eliminates the $7,500 EV credit and renders Zero Emission Vehicle (ZEV) credits redundant, a significant revenue stream for the company.
What Happened
- Tesla shares fell more than 5% in overnight trading, currently trading at around $297.70.
- The drop in stock price follows Musk’s announcement of a new political party, sparked by the Senate’s approval of the Big Beautiful Bill.
Why It Matters
- The launch of a new political party by Musk has been met with criticism from President Trump, who called the move “a train wreck” and stated that there is no need for a third political party in the U.S.
- Experts, including Wedbush Securities analyst Dan Ives, have also criticized the move, calling it a step in the opposite direction for the EV giant.
- The elimination of EV credits and ZEV credits in the Big Beautiful Bill is expected to have a significant impact on Tesla’s revenue.
Market Impact
The news has sent shockwaves through the market, with many investors and experts weighing in on the potential implications for Tesla’s stock. As the situation continues to unfold, it remains to be seen how the company will navigate these challenges and what the long-term effects will be on its stock price.
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- For more insights and analysis, check out our Future Of Mobility coverage.
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