<div id="readability-page-1"><div><div>BENGALURU (June 6): Cracks in the relationship between President Donald Trump and Tesla CEO Elon Musk, his self-proclaimed &#34;First Buddy&#34;, are scaring Tesla shareholders as the two fired salvos at each other in increasingly heated rhetoric on Thursday. Shares fell more than 8% on Thursday on a day otherwise devoid of news for the electric automaker, as traders dumped the stock in heavy trading after Musk stepped up his criticism of the president's tax bill. Trump fired back, alleging Musk was upset because the bill takes away tax benefits for electric vehicle (EV) purchases, while investors feared their souring relationship could hurt Musk's sprawling business empire. &#34;Look, Elon and I had a great relationship. I don't know if we will anymore,&#34; Trump said. &#34;He said the most beautiful things about me. And he hasn't said bad about me personally. That'll be next. But I'm very disappointed.&#34; <img src="https://imageproxy.pbkrs.com/https://myassets.theedgemalaysia.com/pics/2025/Tesla-price_20250606010044.jpg?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="1200" height="713" original-src="https://imageproxy.pbkrs.com/https://myassets.theedgemalaysia.com/pics/2025/Tesla-price_20250606010044.jpg"/> Musk, the world's richest man and a key figure in the Department of Government Efficiency's (DOGE) cost-cutting plan for several months, has blasted the bill, after he decided to spend less time in the White House and instead focus on his companies. On his social media platform X, Musk has called on Congress members to kill the legislation, calling it a &#34;disgusting abomination&#34;. &#34;It more than defeats all the cost savings achieved by the DOGE team at great personal cost and risk,&#34; Musk, the largest Republican donor in the 2024 election campaign, said on X on Tuesday. Musk's leadership of DOGE and his alignment with the Trump administration had put off some Tesla buyers. Sales of his EVs slumped in Europe, China and key US markets like California, even as overall electric vehicle purchases continue to grow. Musk has slowly started to separate himself from the White House in recent weeks, stung in part by the wave of protests against Tesla. &#34;Elon's politics continue to harm the stock. First he aligned himself with Trump which upset many potential Democratic buyers. Now he has turned on the Trump administration,&#34; said Tesla shareholder Dennis Dick, chief strategist at Stock Trader Network. Musk's other businesses, SpaceX and Starlink, dominate their respective markets, but have also come under scrutiny due to Musk's relationship with Trump. Those two businesses often serve as the default choice for commercial launches and satellite internet deployment, and foreign governments have increasingly looked to Starlink, with regulatory approvals smoothed by Musk's ties. Tesla shares are down 12% since May 27, roughly coinciding with his decision to pull back from Washington activities. Losses accelerated on Thursday as 100 million shares changed hands, roughly the daily volume over the last 100 days. The stock has been on a roller-coaster ever since Musk endorsed Trump in mid-July 2024 in his re-election bid, gaining 169% from that point through mid-December. That was followed by a 54% slide through early April as a &#34;Tesla Takedown&#34; protest intensified. The House of Representatives version of the budget bill proposes largely ending the popular US$7,500 (RM31,841) EV subsidy by the end of 2025. Tesla and other automakers have relied on incentives for years to drum up demand, but Trump promised during the transition to end the subsidy. Tesla could face a US$1.2 billion hit to its annual profit, along with an additional US$2 billion setback to regulatory credit sales due to separate Senate legislation targeting California's EV sales mandates, according to JP Morgan analysts. &#34;The budget bill contains bad stuff for Tesla with the end of the EV credits, and just generally his falling out with Trump has risks for Tesla and Elon's other companies,&#34; said Jed Ellerbroek, portfolio manager at Argent Capital Management. Musk's public attacks have upset potential Republican Tesla buyers as well, Dennis Dick said. One White House official on Wednesday called the Tesla CEO's moves &#34;infuriating&#34;. The billionaire joined Senate Republican deficit hawks this week to argue that the House bill does not go far enough in reducing spending. Overall, Tesla shares are down 22% this year, including Thursday's losses. But the company is still the most valuable automaker worldwide by a long shot - carrying a market value of US$1 trillion, way above Toyota Motor's nearly US$290 billion. Tesla trades at 140.21 times profit estimates, a steep premium to other Big Tech stocks such as Nvidia. Read also: Trump says he’s ‘disappointed’ by Musk over critique of tax bill Uploaded by Felyx Teoh </div></div></div>

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Tesla shares fell over 8% amid escalating tensions between President Trump and CEO Elon Musk, who criticized Trump's tax bill. Investors are concerned that their deteriorating relationship could negatively impact Tesla's business. Musk's opposition to the bill, which threatens EV tax benefits, has led to declining sales in key markets. Analysts warn that the proposed budget bill could cost Tesla $1.2 billion in annual profits. Overall, Tesla shares are down 22% this year, yet it remains the most valuable automaker globally, valued at $1 trillion.

- Tensions between President Donald Trump and Tesla CEO Elon Musk have escalated, causing Tesla shares to drop over 8% amid heavy trading.  
- Musk criticized Trump's tax bill, which removes electric vehicle purchase benefits, while Trump suggested Musk's discontent stems from this change.  
- The fallout from their relationship could negatively impact Tesla's sales and profits, with analysts predicting significant financial losses due to legislative changes and Musk's political stance.

Tesla shares fall as growing Trump-Musk spat rattles investors