Tesla experienced a market value loss on Thursday, with shares plunging 14%, translating to a staggering $150bn wiped from the company's valuation.

This sharp decline followed a public row between US President Donald Trump and Tesla CEO Elon Musk, a situation that has alarmed investors and traders alike.

The feud, which played out over social media, centred on criticisms of the president's tax bill and its impact on electric vehicle (EV) tax benefits.

The conflict between Trump and Musk escalated quickly, with Musk's social media posts criticising the president's policies, prompting a sharp response from Trump.

Trump alleged that Musk was disgruntled due to the tax bill's removal of EV purchase incentives.

This public disagreement has raised concerns about potential regulatory and operational challenges for Tesla, especially as the US Transportation Department has considerable influence over vehicle design standards and is currently investigating Tesla's "Full Self-Driving" software.

Tesla's strategy has shifted towards self-driving robotaxis, with Musk emphasising their importance to the company's future.

Analysts from Wedbush have suggested that the AI and autonomous driving sector could add up to $1tn in market value for Tesla.

However, the company's reliance on camera-based detection, as opposed to the industry-standard radar and lidar sensors, could become a regulatory sticking point.

The stock has seen volatile movements since Musk's endorsement of Trump's re-election campaign in mid-2024, including a significant rally followed by a sharp downturn as a "Tesla Takedown" protest gained momentum.

Sales have dipped in major markets, including Europe, China, and California, partly due to Musk's political alignments.

The House of Representatives' version of Trump's budget bill could further impact Tesla by proposing an end to the $7,500 EV subsidy by the end of 2025.