Key Points

• Tesla shares plummet 14% to close at $283.16, down from $322.71 at open.
• $152 billion in market value was erased in one trading session.
• The feud between Elon Musk and Donald Trump sparks political and economic concerns.
• Fears rise over potential risks to Tesla’s federal contracts, including SpaceX ties.

Tesla shares plunged 14% on Thursday, closing at $283.16, down sharply from the session’s open of $322.71. The single-day loss wiped out over $152 billion in market value, marking the stock’s steepest daily decline since September 2020.

The selloff followed a highly publicized and politically charged feud between Elon Musk and former President Donald Trump, igniting fears of potential federal contract risks. Market participants appeared to price in the possibility that Tesla’s government-backed projects, particularly in energy infrastructure and aerospace via SpaceX, could face heightened scrutiny.

The political spat escalated after Trump accused Musk of being disloyal and benefiting excessively from federal EV subsidies. Musk responded with a fiery rebuttal, claiming partial credit for Trump’s 2024 campaign success and hinting at retaliatory actions involving his commercial ventures, some of which have direct ties to federal funding.

Analysts at Wedbush described the reaction as “emotion-driven but not unjustified,” noting that Tesla’s exposure to government contracts makes it susceptible to policy volatility. If tensions extend beyond rhetoric into regulatory or legislative action, the long-term implications for Tesla’s revenue streams could intensify.

Technical Analysis

Tesla (TSLA) charted a dramatic breakdown through multiple support levels, hitting an intraday low of $273.18 before closing slightly higher. The 15-minute chart highlights strong bearish momentum, with the 5-, 10-, and 30-period moving averages aligned in a steep downward formation, indicating sustained selling pressure and little sign of stabilization.

The MACD remains firmly in negative territory, with no bullish crossover in sight. Histogram bars continue to flash red, confirming a lack of buyer interest. A small bounce near the $273 level may offer temporary support, but technicals suggest that unless buying volume returns decisively, the $300–$310 resistance range could cap any short-term recovery.

With the political dispute taking center stage, traders should prepare for further volatility. The next 48 hours may be pivotal, either bringing a de-escalation and potential relief rally or deeper fallout if federal scrutiny intensifies. Market watchers are advised to monitor statements from government officials and any updates on federal contract reviews.

For now, sentiment remains fragile, and Tesla’s stock is likely to trade reactively as the Musk–Trump clash continues to unfold.

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