Tesla already had big problems. Then Musk went to fight Trump

Tesla faces huge challenges, trying to return the road after the first quarter. These winds have increased significantly this week.

CEO Elon Musk officially ended its term with the Trump administration in late May, hitting 130-day brandThe maximum time allowed for a “special civil servant”. On the way out of the door, Musk expressed sharp criticism of Trump’s signature Consumption of a bill discussed in Congress because of its expected impact on national debt.

That, President Donald Trump Throwing insults from each other from their respective social media platforms. After Musk called “one, the big beautiful Bill” and the abomination “and gathered his followers on X to” kill the bill “, Trump said Musk I was “crazy” and threatened to terminate the government’s contracts and to tear off subsidies for Musk companies. Musk replied, “Continue, do my day.”

RIFT sent shares to Tesla fall 14% on Thursday, deleting approximately $ 152 billion in value, most of all for every day in the 15-year history of the company in the public market. While Musk is still the most rich man in the world on paper, his net value is immersed by $ 34 billion, according to Bloomberg Billionaire IndexS

More importantly, spitting has led to the collapse of a relationship that mixes business, politics and power in a way that is almost unprecedented in the history of the United States. The consequences to Tesla, which fell out of the trillion dollar club on Thursday, can be severe, not just because Trump is reported to be considering selling or distributing the red model that he purchased in March after turning the White House grass into A Tesla showroomS

A senior White House official told NBC News on Friday that the president is not interested in calling Musk to resolve his feud.

Ire of the Trump Administration can influence everything-from future regulation, investigations and state support for Tesla, to decisions on the exceptions to the tariffs that the company is looking for to buy production equipment manufactured by China

Tesla’s shares were poorly lower than the wider market before the collapse of Musk-Trump. Revenue slid 9% in First quarter A year earlier, cars dropped by 20%due to increased competition from EV creators with lower costs in China and a consumer turnaround to Trump’s political activities and rhetoric.

Certainly not what Tesla shareholders expected when they sent the stock About 30% in the days after the Trump election wins in November. After spending nearly $ 300 million to return Trump to the White House, Musk was ready to play a significant role in the administration and be able to make regulatory changes in the ways that its companies benefit from.

Instead, his company was injured and Musk’s behavior is guilty above all.

One of his most divorcing actions in the leadership of the Ministry of Government of the Trump Administration (Doge) was the dismantling of USAID, which had previously delivered billions of dollars from Food and medicine to more than 100 countries.

Beyond the United States, Musk has approved the far -right extremist party of Germany AFD and gave a gesture that many consider as a Nazi greeting at a rally for taking office.

In response in recent months there were numerous cases of vandalism or arson of Tesla facilities or vehicles in the United States, as well as waves of peaceful protests in stores and service centers in North America and Europe.

The ads in protest against Musk appeared on the New York Times Square, and in the bus shelters in London, calling for people to boycott Tesla, some of which are labeling the company’s EV as SwASTICARS. Vancouver International Motor Show even removed Tesla From the list of exhibitors, the fear that the presence of the company would cause safety problems.

On top of all are President Trump’s sweeps Tariffswhich have led to fears that costs will increase for parts and materials decisive for the production of EV. In his first quarter profit report in April, Tesla refrained from promising growth this year and said it would “review our guidelines for 2025 in our Q2 update.”

The pension funds investing in Tesla said the “crisis” in the company requires A leader who works at least 40 hours a week to focus on solving his problems.

Public officials sound these moods and call on Tesla’s board to take action.

New York controller Brad Lander said on Thursday in a statement to the CNBC that the “fight against the schoolyard” between Trump and Musk emphasizes how “the weak reporting measures of Tesla and poor management threatens not only the financial stability of the company and the value of the shareholders, but also the future of Homegrow EV production.

Brooke Lierman, a Maryland controller, told CNBC that the company’s board “is not doing its job to ensure that it has a CEO at Tesla, which puts the interests of the company in the first place.”

Since Musk’s name is synonymous with Tesla, the board must ensure that Tesla can stand alone, no matter who is the leader of the company, she added.

“Musk’s behavior continues to threaten Tesla’s future,” Lierman said. “While Tesla identifies with Elon Musk and he continues to be a polarizing figure, he will continue to damage the brand, which is a huge part of Tesla’s value.”

Musk did not respond to a request for comment. CNBC also addressed comments from boarding board Robin Denholm and directors and managers who work in relations with the government and in the service of the Executive Director. None of them responded since the time of publication.

Tesla investors, focused on the foundations of business, are justified in their skepticism.

The company failed to implement innovative and affordable new EVS models, while Chinese competitors like BYD have flooded the market, especially in Europe.

Analysts at Goldman Sachs On Thursday, they lowered their price price to Tesla, mainly due to the prospects for 2025. Deliveries during this quarter follow the US, the analysts noted, while European sales decreased by 50% compared to the year in April and another two-digit decrease in May. China’s sales have decreased by about 20% over the year, compared to a year earlier.

Quality is also a problem. Tesla has announced eight Cybertruck’s voluntary reminders for 15 months due to a number of problems, including software errors and accelerator adhesive pedals.

But even there, Tesla is lagging. In AVS, the company has retreated on the grounds Alphabet Waymo, which works with commercial robotaxes in several US markets. After a decade of missed deadlines, Musk promised a small start to a driver -free driver service in Tesla in Austin This month.

The Austin Robotaxi service will operate in a Geofenced area, Musk said in a recent CNBC David Faber interview and start with a small fleet of only 10 to 20 Model Y vehicles with full self -driving (FSD) not installed. If all is going well, Musk said, Tesla would try to quickly expand his offers without a driver in other markets such as San Francisco and Los Angeles.

What users will not see soon are the vehicles of Cybercab and Robovan that Tesla announces “We robot” Event last year to accumulate enthusiasm for customers and investors.

On Friday, Milan Kovak, Tesla’s Vice President of Optimus Robotics, announced that he was leaving after joining the company in 2016. Musk thanked him for his “Exclusive contribution“In the post of X.

However, there are many Tesla Bulls and Musk fans who are believers in the vision of the CEO. 4% of the shares on Friday is a sign that some saw the opportunity to buy the immersion.

“I think the true story here is the Tesla investor base is literally not interested in anything,” Josh Brown, CEO of Ritholtz Wealth Management and CNBC Pro AssistantCNBC’s Half -Time Report said on Friday. “This is not yet a stock of nothing.”

Tom Lee of Fundstrat said SellofF Tesla was “too much”.

The Tesla market cap, which is drastically inflated with any other car manufacturer in the United States, is built on the Musk vision for Tesla Optimus humanoid robots, doing factory work and watching our children while self -governing cyberbile and robovans make money around passengers.

Adam Jonas of Morgan Stanley wrote in a note this week that “Tesla still holds so many valuable maps that are largely apolitical,” pointing to what he sees as “archrodity, autonomy/robotics, re-architecture of the supply chain, renewable power, (and critical.

With regard to Tesla’s existing business, the most non -consistent impact of what is happening in Washington, Colombia District, is the retreat of EV loans to the current budget bill that Musk is strongly opposed and who is struggling to find sufficient support in the Senate. There is also a matter of tariffs and whether Tesla can get a preferred treatment, which seems less likely when musk.

Matthew Labro, a former Tesla program manager, told CNBC that it was not surprised that Musk had blown up with the president. Labrot was terminated earlier this year after sending Open letter He protests against Musk’s dividing political activity.

“I am devastated for the country and the climate, although Elon is only guilty,” Labro said in an interview. “Back free canon, expect the stray fire of the canon.”

Tesla investors cannot know at the moment how much of Musk’s energy and time will return to his lonely public company, and the business responsible for the vast majority of his wealth. Even without politics, it still has SpaceX, AI startup XAI and Brain Tech Startup Neuralink, among other businesses.

As of Thursday, Musk still had an West Wing office that was not cleaned, two administration officials told NBC News. One of the officials said the space would probably be packed in the coming days.

And while his time at Trump’s camp may end, Musk has called on his followers to create a new party in the United States

“Is it time to create a new political party in America, which actually represents 80% in the middle?” He wrote on X on Thursday, in a publication that is now nailed at the top of his page. According to the publication, 80% of 5.6 million respondents in the unofficial poll say yes.

Musk’s actions this week may have caused a constant break with the president. But one thing is clear – his company cannot escape from the White House.

Watch: The impact of Musk’s feud with Trump