baileystock
Tesla (NASDAQ:TSLA) fell sharply in Thursday trading after the relationship between President Trump and Elon Musk fractured in a public way.
Trump expressed “disappointment” over Musk’s opposition to the tax bill pending that is pending in the U.S. Senate and attributed it to the electric vehicle tax credit being pulled. That set off a social media rampage from Musk, criticizing the tax bill and its projected negative impact on the U.S. deficit.
Shares of Tesla (NASDAQ:TSLA) were down 8.5% at 1:10 p.m. after being down more than 9.4% earlier in the session. The selling pressure over the last two days has wiped out more than $100 billion from Tesla’s (NASDAQ:TSLA) market cap after taking into account yesterday’s decline as well.
Elsewhere, Lucid Group (LCID) is down 4.0%, while Rivian Automotive (RIVN) is slightly positive. Both stocks already trade in the shadow of the EV tax credit development. Under current law, the EV tax credit, worth up to $7,500 for new EVs and $4,000 for used EVs, was set to expire at the end of 2032. The new bill accelerates the expiration to December 31, 2025, for most vehicles. This means that in 2025, the credit would only remain available for vehicles from manufacturers that have sold fewer than 200,000 qualifying EVs since 2010. Major brands, like Tesla (TSLA) and General Motors (GM), will see the credit effectively disappear after 2025 if the bill is passed.