Nightmare for Tesla shareholders as $150 billion wiped out in market value after Elon Musk and Donald Trump's Public fight, Big fear is: Trump is not going to play ...

Tesla shares

plunged more than 14% on Thursday, wiping out $150 billion in market value, as a public spat between CEO Elon Musk and President Donald Trump intensified, raising fears of regulatory backlash against the electric vehicle maker.The sell-off followed a heated exchange over Trump’s budget bill, which turned personal when Musk claimed Trump’s election victory depended on his support. Trump retaliated on Truth Social, writing, “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” hinting at targeting Musk’s companies, including Tesla and SpaceX.The market’s reaction was swift, with Tesla’s stock drop erasing more value than the market capitalization of Starbucks or many other major U.S. companies. The decline partially reversed a surge since November, when investors poured hundreds of billions into Tesla stock, betting Trump’s administration would ease regulations and support Musk’s vision for autonomous “robotaxi” services.Wedbush Securities analyst Dan Ives, a Tesla bull, expressed concern to the AP, stating, “The whole goal of robotaxis is to have them in 20 or 25 cities next year. If you start to heighten the regulatory environment, that could delay that path.” Ives added, “There is a fear that Trump is not going to play Mr. Nice Guy.”

The feud also casts a shadow over SpaceX, Musk’s privately held rocket company, which relies on billions in NASA contracts for lunar missions and International Space Station operations. SpaceX’s Starlink subsidiary has recently secured deals in Saudi Arabia, Bangladesh, and elsewhere, potentially aided by Musk’s ties to Trump. A recent private financing round reportedly valued SpaceX at $350 billion, up from $210 billion a year ago.Tesla’s stock had soared post-election, gaining over $450 billion in value as investors anticipated regulatory leniency. However, Thursday’s losses hit Musk personally, slashing his Tesla holdings by $20 billion in a single day, the AP reported. With Tesla’s robotaxi testing set to begin in Austin, Texas, this month, investors now worry that Trump’s threats could jeopardize the company’s ambitious driverless car plans, critical to its future amid struggles in its core electric vehicle business.