Tesla (TSLA) shares took a hit on Wednesday following a very public political clash between former President Donald Trump and Tesla CEO Elon Musk. The dispute adds fuel to a week already clouded by mixed international sales figures and growing investor uncertainty.
The spark came Tuesday when Trump, formerly head of the satirical Department of Government Efficiency (DOGE), launched into a scathing critique of a newly approved Congressional spending bill. In a Truth Social tirade, Trump wrote:
"I'm sorry, but I just can't stand it anymore. This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those in the House who voted for it."
Musk, no stranger to controversy himself, echoed sentiments about government inefficiency and overspending in a series of posts, signaling alignment with some of Trump’s complaints but distancing himself from the political circus that ensued. The market reacted swiftly to the clash, with Tesla stock dropping nearly 4% in midday trading.
Mixed Sales in Global Markets
The political drama wasn’t the only headwind facing Tesla this week. The company’s recent auto sales data from international markets painted a mixed picture:
- In Australia, Tesla saw a slight uptick in sales thanks to strong Model Y performance.
- In Europe, however, deliveries have slowed in key countries like Germany and the Netherlands, largely due to increased competition from local automakers and reduced EV subsidies.
The uncertain sales trends combined with political noise are raising red flags for investors who are watching closely as Tesla navigates a more competitive EV landscape and shifting global policies.
Investor Sentiment Turning Cautious
While Tesla remains a long-term favorite for many growth investors, recent events have shaken confidence. Wall Street analysts suggest the company may face short-term volatility unless leadership manages to distance core operations from political entanglements.
For now, all eyes remain on Tesla's upcoming earnings report and any potential comments from Musk addressing both the political noise and sales performance abroad.
By ✍️ Yorlinda Ramìrez - MicuPost Team
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