Electric vehicle (EV) shares, Tesla, fell more than 14% and affected the market value by $150 due to the dispute between the President of the United States (US) and CEO Elon Musk.
This situation occurred after Musk criticized the budget bill "One Big Beautiful Bill" which is claimed to be able to affect the future of clean energy and the green technology industry.
Trump, in turn, claimed that Musk was upset because the bill eliminated EV tax benefits and threatened to cancel the government contract of Musk's company, SpaceX.
According to JP Morgan, Tesla is at risk of incurring annual losses of $1.2 billion in addition to losing an additional $2 billion from regulatory credit sales, following the Senate law that affects the EV mandate in California.
Furthermore, the dispute with Trump is likely to create various major obstacles to Musk's entire business empire.
In other developments, due to the decline in EV sales, Musk is now focusing on the development of self-driving robotaxi for the future of the company.
The US Department of Transportation will determine whether Tesla can develop a robotaxi without pedals and steering wheels, while also investigating its “Full Self-Driving” software following a fatal accident.
Tesla’s organization remains the world’s most valuable automaker with a market value of around $1 trillion, far surpassing Toyota Motor, which was valued at $90 billion as of Wednesday.
