NEW YORK (Reuters) -President Donald Trump threatened on Thursday to cut off government contracts with companies owned by billionaire Elon Musk, as the alliance between the world's most powerful man and its richest erupted into a rancorous public fight. The feud, which exploded in spectacular fashion over the course of a few hours, pushed shares of electric vehicle maker Tesla down dramatically. The company, where Musk serves as chief executive officer, closed down 14.3% for the day and lost about $150 billion in value after Trump and Musk began their war of words.
Trump Media and Technology Group Corp ended down 8.04% to $20.12 The Nasdaq closed 0.8% lower to 19,298.448. COMMENTS: JAMIE COX MANAGING PARTNER, HARRIS FINANCIAL GROUP, RICHMOND VIRGINIA: "Billionaire spats rarely have any lasting impacts on markets, but this fallout was more than predictable. At some point, there was bound to be some divergence in priorities that led to a split between Trump and Musk."
ANALYSTS FROM WEDBUSH (RESEARCH NOTE) "Tesla's stock is under major pressure…as investors fear that this Musk/Trump battle will stop their friendship and change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump Administration. The quickly deteriorating friendship and now 'major beef' between Musk and Trump is jaw dropping and a shock to the market and putting major fear for Tesla investors on what is ahead. This situation between Musk and Trump could start to settle down and the friendship continues but this must start to be calmed down on the Musk and Trump fronts and it's not good for either side.
"This feud does not change our bullish view of Tesla and the autonomous view but clearly does put a fly in the ointment of the Trump regulatory framework going forward. It's another Twilight Zone moment in this Musk/Trump relationship which now is quickly moving downhill." MARK MALEK, CHIEF INVESTMENT OFFICER, SIEBERT FINANCIAL, NEW YORK: "The market is watching what is happening between these two very volatile personalities.
I don't think that people are suddenly worried about the deficit, but rather that the Senate will skinny down this 'big beautiful' bill. They're worried that we won't see the stimulus that everyone has been awaiting and expecting, after all, if people listen to what Elon says. And it's odd that someone like Elon is being seen as a motivating force for people to stand up and say they care about the deficit, suddenly."
