The public disagreement between Elon Musk and President Donald Trump is causing significant repercussions for Musk’s businesses, Tesla Inc. (NASDAQ:TSLA) and SpaceX.

What Happened: The fallout from this dispute has led to a 14% drop in Tesla shares, erasing $138 billion from the company’s market value. Musk’s personal fortune has also suffered, decreasing by $34 billion.

The public spat could lead to Musk losing the support of Trump’s followers, who have previously stood by him during Tesla’s stock declines. Post the disagreement, Trump is reportedly contemplating selling his Tesla car, which he bought at a White House event with Musk.

Analysts have cautioned investors to prepare for more turbulence. According to one of the prominent analysts, Tesla’s stock was “extremely overvalued” due to the perceived advantages from Musk’s association with Trump.

With this cushion now gone, investors are compelled to evaluate the company’s actual internal figures, which Monteiro asserts are not in line with the stock’s performance this year.

As per the report by Insider, Trump has also hinted at making regulatory hurdles for Tesla and terminating government contracts with Musk’s companies, which could save “billions and billions.”

Also Read: Anthony Scaramucci Tells Musk To ‘Stick To Business’ -- Here’s Musk’s Musical Response

This could particularly affect SpaceX, which has approximately $22 billion in federal contracts and considers NASA its biggest client.

The public disagreement has also led Musk to poll his followers about forming a new political party, a move that could cause further friction with Trump and within the Republican Party.

Despite the escalating feud, some prominent supporters of both Musk and Trump have urged for a reconciliation for the nation’s benefit.

Why It Matters: The public feud between these two influential figures could have far-reaching implications. The potential loss of Trump’s followers’ support and the threat of regulatory hurdles could significantly impact Tesla and SpaceX’s future.

Moreover, the possibility of Musk creating a new political party could add another layer of complexity to the already tense situation.

The call for reconciliation from high-profile backers indicates the gravity of the situation and its potential impact on the country’s socio-political landscape.

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