By Admin 
Trump-musk row: The friendship between Tesla CEO Allen Musk and US President Donald Trump is well known, but now the relationship between the two has been rift. It is being told that the reason for this sourness is a tax policy bill, which has been severely criticized by Musk.
In fact, Musk described the bill related to Trump’s tax and expenditure as a bill for wastage of public money. They even called it shameful. Musk also said that the bill could not be discussed much so it was passed overnight. Now it is obvious that after this comment of Musk, Trump has also become very angry.
Trump threatened Musk
Talking to the media on Thursday night, Trump claimed that Musk had complete information about tax and expenditure bill. After separating from the government, as soon as he came to know about cutting the electric vehicle (EV) mandate, he suddenly had a problem. While Musk says that he did not know anything about it beforehand. Here, during the increasing tension between the two on social media, Trump even threatened Musk to end government subsidy and contracts.
Bad condition of Tesla shares
The effect of this dispute between the two was such that Tesla’s shares declined by 14 percent on Thursday. This caused a loss of $ 152 billion in Tesla’s market cap. The company’s market cap has now come down from $ 1 trillion to $ 916 billion. This is the biggest decline ever in Tesla’s market cap. According to Forbes, after this decline in the shares on Thursday, Musk’s total assets have come down by about $ 27 billion to $ 388 billion.
Why is Musk angry with Trump?
Musk Trump is angry with this budget bill because it proposes to abolish the tax credit of up to $ 7,500 on the purchase of EV. This decision of Trump will have a big impact on companies including Tesla, which depend on this subsidy. According to JP Morgan, Tesla may lose $ 1.2 billion annually due to the government’s new policy on EV tax credit.
The reason for abolishing EV tax credit
The law made during the time of Trump Biden wants to eliminate EV tax credit because he believes that due to this, many companies like Tesla are going to private companies instead of government treasures due to uneven benefits. Trump wants to use it for economic development by eliminating it. Their plan is to promote private investment with this money, which will give more jobs to more people and will strengthen the economy.
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