TSLA drops 14% as investors see corruption being priced out of Tesla stock
Tesla stock dropped over 50 points today, primarily in response to a very public feud between Tesla CEO Elon Musk and convicted felon Donald Trump.
But, as we pointed out in November, this doesn’t have anything to do with company performance, and rather only reflects a change in the market’s expectation of potential benefit to Tesla from government corruption.
Tesla stock has had a wild few months, with big rises and falls that has had little to do with company performance (which is, perhaps, nothing new for the stock, which has always been a speculative vehicle).
Much of the movement of TSLA has been centered around CEO Elon Musk’s relationship with Donald Trump.
Musk very publicly supported Mr. Trump’s run for president, giving hundreds of millions of dollars in bribes to Mr. Trump’s campaign, despite the latter’s openly anti-EV positions (and despite that there exists a clear legal remedy stopping insurrectionists from holding office in the US).
Musk even went on to spew climate denying nonsense alongside Mr. Trump during the campaign, and later said nothing when Mr. Trump opposed the Paris Agreement, even though he previously opposed a similar move in 2017.
This led to Musk being invited into an advisory role, which was dubbed the Department of Government Efficiency despite it not being a real government department, and having a supposed mission redundant with the already-existing Government Accountability Office.
And in the immediate aftermath of the election, TSLA stock rose swiftly, purely because of expectations of corruption. But after that swift rise, it gradually fell as the reality of economy-destroying tariffs, anti-EV legislation, and Tesla’s brand perception problem due to Musk’s actions all became apparent. Despite Musk’s position as a top republican party donor, the party still seems more interested in catering to its traditional base in the fossil fuel industry.
Despite some recovery from that big post election rise-and-drop, TSLA took another big hit today, and it’s all due to the current rift forming between these two egomaniacs.
A rift over spending becomes something greater
During his tenure in his advisory position, Musk claims to have saved the government hundreds of billions of dollars, but independent accounting has shown that it is in fact likely to increase the deficit, not decrease it.
Nevertheless, it seems like Musk was fooled into believing his own propaganda, and into thinking that deficit reduction was ever a goal of Mr. Trump, despite that he previously oversaw the highest nominal deficit of any person in the history of the United States.
At least, he believed that until now. In the last few days, after leaving his advisory position, Musk has loudly opposed the new republican budget bill, which he now correctly points out will add trillions of dollars to the US deficit (as any lucid person might have predicted from the party of waste).
The criticism came to a head today, with Musk going through one of his patented tweetstorms, acting more like a jilted lover than a CEO in charge of a company that has many people’s retirement invested into it.
There’s been a lot of back and forth, but over the course of the day, Musk has posted many statements about how dangerous the budget bill will be for the US debt and deficit.
Mr. Trump responded, stating that Musk should have known these things before now, but that Musk is only acting this way because he cut the “EV mandate.”
To be clear, the bill in question does not cut any EV mandate, as there was never an EV mandate to begin with, but it does cut EV tax credits which Tesla has gained more benefit from than any other company, though Tesla lobbied in support of these cuts. The bill does not cut support for oil and gas companies, which are orders of magnitude higher than the support EV companies get.
In response to this, Musk claimed that he personally swung the election in favor of the republicans, and that Mr. Trump is showing “ingratitude” by not recognizing this fact.
Mr. Trump responded by suggesting that the government could save money by terminating all of the subsidies and contracts for services with Musk’s various companies. To this, Musk said that he would immediately decommission the Dragon capsule, which has been the main spacecraft used by NASA to service the International Space Station.
Then, Musk went on to state that a recession will happen in the second half of this year due to Mr. Trump’s position on tariffs, and also to accuse Mr. Trump of being on Jeffrey Epstein’s list (which is not the first time Musk has publicly accused someone of pedophilia, though it is the first time he’s said that about someone who he claimed to “love as much as any straight man can,” and knowingly worked alongside), and to agree with a call for his impeachment.
The market sees this as a negative sign
The public rift seems to have shaken the stock market out of its stupor, as Tesla went down more than 50 points since the start of today.
While nothing significant has changed for Tesla’s business today – it’s still suffering from falling sales in an otherwise rising market, and it still has a bad CEO – what has changed is the possibility of the company benefitting from corruption.
As I stated during TSLA’s meteoric post-election rise, the stock price was merely a reflection of the market’s expectation that Mr. Trump, a person with an enormous history of corruption, would thank Musk for his election participation by rewarding him and his companies. Nobody quite knew how that might happen, but everyone expected that it would.
I claimed, at the time, that this was unlikely to turn out the way the market thought it would, because the republicans would likely continue to favor fossil fuels, and that regulatory blockages were not the thing holding Tesla back from its automation goals.
Musk did attempt to use the government in corrupt ways, as detailed this week in a report by Senator Warren, and as we all remember from the White House Auto Mall infomercial (remember, folks, “everything’s computer!“).
But none of that was ever going to justify the addition of hundreds of billions of dollars to Tesla’s market cap.
The market seems to be realizing that more today, as over $100 billion has been shaved off of Tesla’s market cap since the start of the feud. That’s quite a lot of priced-in expected benefit that has been wiped away, all by a single tweetstorm.
Fight shows how vulnerable Tesla is to Musk’s whims
While it’s all well and good to see the worst two people you know fighting each other, and to finally see the inevitable fallout between two narcissists who frankly held out much longer than any reasonable person thought they would, this fight does show the significant vulnerability that Tesla has to the whims of a CEO who has shown poor ability to control his impulses in the past.
The last year or more has been highlighted by several poor business decisions by Musk, not the least of which is his support of one of the larger anti-EV entities on the planet right now.
But beyond the politics, his leadership has still been erratic for the company. Not only has he paid more attention to the many other companies he runs, when he has turned his attention to Tesla, it hasn’t been positive for the company.
After mostly ignoring Tesla for a few years, he went through a flurry of activity in the run-up to last year’s shareholder advisory vote on his compensation package. This flurry involved firing everyone including important leadership and successful teams, canceling an all-important affordable car project (and lying about it) and holding Tesla’s AI projects hostage while shifting both resources and staff from Tesla to his private AI company, even as he claims that AI is the future of Tesla.
Now, TSLA investors have another thing to worry about – whether Musk will continue to try to “poke the bear” and get more government opposition to his company, even as he continues to make himself distasteful globally (by, for example, showing support for German neo-Nazis, agreeing with a defense of Hitler’s actions in the Holocaust, or his many other white supremacist statements). These actions have driven protests against the company, embarrassed owners and pushed many customers away – and those protesters aren’t planning on stopping.
While some may cheer this new rift that has formed between Musk and one of the environment’s greatest enemies, Donald Trump, it seems unlikely that Musk’s erratic behavior will be beneficial for Tesla the company in the long run.
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Environment
Archer Aviation is planning an air taxi network around the Miami metro area including airports
Archer Aviation has announced partnerships in the Miami metropolitan area to establish a new air taxi network to support travelers around several key areas in Southern Florida, including local airports.
As you probably alrready know at this point. Archer Aviation ($ACHR) is a California-based developer of eVTOL and eCTOL aircraft that it continues to work toward implementing into commercial air taxi rides in the future. The plans for its network of sustainable aircraft have expanded to cities like New York and Chicago, as well as other countries like Japan and the United Arab Emirates.
In California, south of its headquarters, Archer intends to take to the skies above Los Angeles with a proposed air taxi network announced in August 2024. Building upon that network, Archer shared earlier this year that it had become the exclusive air taxi provider of the 2028 Olympic Games in Los Angeles.
On the other southern coast of the United States, Archer is planning another exciting air taxi network that includes the option of quiet, sustainable air travel around Miami, Fort Lauderdale, and several other key landmarks.
Archer partners up to establish Miami air taxi network
Archer Aviation shared details of its new air taxi network plans for Miami in a press release early this morning. If and when it comes to friuition, the proposed air taxi network will be a result of several new partnerships established by Archer in the Miami metropolitan area.
Some of those partnerships include real estate company Related Ross, Apogee Golf Club, Hard Rock Stadium – where existing heliports will be configured for eVTOLs and/or new air taxi vertiports will be erected. Stephen Ross, CEO and Chairman of Related Ross and Owner of the Miami Dolphins:
Our partnership with Archer marks a pivotal step in expanding South Florida’s regional connectivity through cutting-edge technology. We are integrating Archer’s electric vertical takeoff and landing aircraft into our flagship locations across South Florida, including the Hard Rock Stadium in Miami, Related Ross developments in West Palm Beach, and Apogee Club in Hobe Sound. We’re excited to embrace a forward-thinking vision that transforms how people and businesses move across the region.
According to Archer, the new air taxi network will connect passengers to populated areas around Miami Fort Lauderdale, Boca Raton and West Palm Beach, offering 10 to 20 minute flights. Plans also include easier travel to major airports around Southern Florida, including Miami International Airport (MIA), Fort Lauderdale–Hollywood International Airport (FLL), and Palm Beach International Airport (PBI), plus several general aviation airports. Miami Mayor, Francis Suarez, also spoke:
Miami has never been afraid to bet on the future. We’re a city that attracts visionaries, embraces breakthrough technology, and turns bold ideas into real impact. For years, I’ve worked with Archer as they’ve advanced a vision for an air-taxi network that will elevate Miami’s position as a global capital for innovation and mobility. What they’re building isn’t just transformational transportation, it embodies the Miami mindset: we lead, we innovate, and we redefine what’s possible.
Archer did not share a timeline on when this air taxi network may be operational around Miami, but we’d wager it’s still at least a couple of years away given the need for additional eVTOl development and FAA certifications in order to begin commercial operations in the US.
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Germany’s largest offshore wind farm hit a big milestone: The first turbine at EnBW’s He Dreiht project has produced its first kilowatt-hour of electricity and sent it into the grid.
More turbines are expected to come online over the coming weeks. European energy provider EnBW has already installed 27 of the wind farm’s 64 turbines, all of which are scheduled to be commissioned by summer 2026.
Peter Heydecker, EnBW board member for Sustainable Generation Infrastructure, described the November 25 milestone as a “significant moment for EnBW.” With 960 megawatts (MW) of total capacity, He Dreiht is now Germany’s largest offshore wind farm.
Vestas supplied the 15 MW turbines, marking their world debut. Nils de Baar, president of Vestas Northern and Central Europe, said the giant turbine’s technology sets a new standard for offshore wind. “Its efficiency and performance enable a significant increase in energy yield per turbine.”
Just one rotation of the 15 MW turbine’s rotor can power the equivalent of four households for a day. The hub stands 142 meters (466 feet) tall, and the rotor’s 236-meter (774-foot) diameter sweeps a 43,742-square-meter (10.8-acre) area — roughly the size of six football fields. To put the scale into perspective, EnBW’s first offshore project, Baltic 1 in 2010, used 2.3 MW turbines.
EnBW wrapped up the wind farm’s internal cabling in August. Those lines connect all the turbines and feed into a converter platform operated by transmission system operator TenneT. That’s where the power is collected, converted from AC to DC, and sent to shore through two high-voltage DC cables.
Once complete, He Dreiht will generate enough electricity to power about 1.1 million households. The project is being built without state funding and sits roughly 85 kilometers (53 miles) northwest of Borkum and 110 kilometers (68 miles) west of Heligoland. EnBW’s offshore office in Hamburg is coordinating the build.
A partner group made up of Allianz Capital Partners, AIP, and Norges Bank Investment Management owns 49.9% of the project. Total investment comes in at around €2.4 billion.
Read more: China’s surge pushes global wind toward fastest growth ever
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Environment
BYD tried crushing its $180K luxury SUV with a 2-ton tree and it barely left a mark [Video]
![BYD tried crushing its $180K luxury SUV with a 2-ton tree and it barely left a mark [Video]](https://i0.wp.com/electrek.co/wp-content/uploads/sites/3/2025/07/BYD-ultra-luxury-EV-Europe.jpeg?resize=1200,628&quality=82&strip=all&ssl=1)
The Yangwang U8L is among the most expensive Chinese vehicles, starting at about $180,000. To prove it’s built for just about anything, BYD dropped a 2-ton tree on it, three times, and the ultra-luxury pretty much brushed it off.
BYD drops a tree on its ultra-luxury SUV during testing
BYD launched the Yangwang U8L in September, a long-wheelbase version of the U8 off-road SUV. The U8 was first introduced in September 2023 as the first vehicle from BYD’s ultra-luxury sub-brand, Yangwang.
Yangwang is a new energy vehicle (NEV) brand that sells high-end plug-in hybrids (PHEVs) and 100% battery electric (BEV) vehicles as BYD expands into new segments.
The U8L is Yangwang’s fourth vehicle, following the U8, U9, and U7. It’s available in China with a quad-motor extended-range electric vehicle (EREV) system, delivering a CLTC range of 200 km (124 miles) on battery power alone.
A 2.0-liter turbocharged gasoline engine serves as a generator, delivering a combined CLTC range of 1,160 km (720 miles).
Measuring 5,400 mm in length, 2,049 mm in width, and 1,921 mm in height, the Yangwang U8L is even bigger than the Rolls-Royce Cullinan and Range Rover Long Wheelbase.
BYD’s ultra-luxury SUV is priced from 1.28 million yuan ($180,000), making it one of the most expensive models from a Chinese brand.
It may look pretty, but the Yangwang U8L is built for far more than just good looks. Like the U8, the long-wheelbase version is equipped with advanced features such as emergency float mode, which allows it to float on water for up to 30 minutes, tank turns, crab walking, and more.
To prove its durability, BYD engineers put the luxury SUV through the paces, dropping a massive 2-ton tree on it, not once, but three times.
During the final drop, the company said the maximum impact energy reached 50.4 kJ, or about 37,200 lb-ft. After three consecutive drops, the Yangwang U8L barely even got a scratch. The body structure remained intact, the door still opened, the columns didn’t bend, and the vehicle could even drive like normal.
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