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.
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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).
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.
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.”
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.
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.
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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Tesla has unexpectedly terminated a contractor’s contract at Gigafactory Texas, resulting in the layoff of 82 workers who were supporting the automaker’s production at the giant factory in Austin.
MPW Industrial Services Inc., an Ohio-based industrial service provider specializing in cleaning and facility management, has issued a new WARN notice, confirming that it will lay off 82 workers in Texas due to Tesla unexpectedly ending its contract with the company.
Here are the details from the WARN notice:
State / agency: Texas Workforce Commission (TWC).
Notice date: August 27, 2025.
Employees affected: 82
Likely effective date: September 1, 2025
Context from the filing/letter: layoffs tied to an unexpected termination of a major customer contract (Tesla—Gigafactory Texas, 1 Tesla Road); positions include 61 technicians, 7 team leads, 7 supervisors, 7 managers; no bumping rights; workers not union-represented.
In April 2024, Tesla initiated waves of layoffs at the plant, resulting in the dismissal of more than 2,000 employees in Austin, Texas.
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Since then, Tesla’s sales have been in a steady decline. While the automaker is expected to have a strong quarter in the US in Q3 due to the end of the tax credit, sales are expected to decline further in Q4 and the first half of 2026.
Many industry watchers have expected Tesla to initiate further layoffs due to the situation.
Electrek’s Take
We may be seeing the beginnings of a new wave of layoffs at Tesla, as the automaker typically starts with contractors.
To be fair, Tesla could also potentially end the contract unexpectedly for other reasons, but the timing does align with the need to cut costs and staff ahead of an inevitable downturn in US EV sales.
I think it’s inevitable that we start seeing some layoffs. I think Tesla will have to slow down production in the US to avoid creating an oversupply, especially in Q4-Q1.
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First, it was e-bikes, offering an efficient, effective, and low-cost way for teens and just about everyone to zip around town, yet drawing the temper of suburban traditionalists. Now golf carts are the new public enemy number one in suburbia, at least if you ask the growing number of online groups where residents complain about these small electric vehicles “clogging” their streets.
But beyond the hand-wringing, golf carts and their more sophisticated cousins known as Neighborhood Electric Vehicles (NEVs) or Low Speed Vehicles (LSVs), are quietly becoming a popular alternative to cars for short trips around US cities and suburbs.
While most people still associate golf carts with retirement communities in Florida or slow rides across 18 holes, street-legal versions have been around for the last few decades.
But these aren’t your grandpa’s bare-bones carts, complete with a golf pencil clip. Many now come with DOT seat belts, lights, turn signals, mirrors, backup cameras, and speed limiters that allow them to operate legally on roads up to 35 mph, as long as they meet all the federal requirements for Low-Speed Vehicles (LSVs).
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That means such vehicles are legally allowed to operate like cars, trucks, bicycles, or motorcycles on the vast majority of residential streets and a surprising portion of urban grids. In other words, for grabbing groceries, school drop-offs, or cruising to a friend’s house, they’re a practical, cheaper, and far greener substitute for firing up a 5,000-pound SUV.
The Club Car Cru adds extra luxury to the concept of an LSV
Golf carts have been slowly taking off for years, but the pandemic accelerated the trend. Sales of golf carts and LSVs spiked as families looked for safe, outdoor transportation and an easy way to get around their neighborhoods. Now, in cities all over the country, the sight of parents driving their kids to school or running errands in a cart is increasingly common. In some towns, petitions have even popped up with hundreds of residents asking for local ordinances to legalize them on more streets, according to the Daily Mail.
Of course, not everyone is thrilled. There’s growing backlash against the increase in golf carts on streets, with many residents calling them a “plague” and complaining that they’re taking up space on the roads, in parking lots, or creating unsafe conditions. While rare, there have been serious accidents too, with a handful of tragic cases highlighting the dangers of mixing small, lightweight carts with full-size vehicles. Critics argue that carts lack the crash protection of cars and don’t always fall under homeowners’ insurance policies if an accident happens.
But for every critic, there’s a supporter pointing out that golf carts take cars off the road, save money on fuel, and are no more dangerous than scooters or e-bikes – modes of transport that already share the streets. And major golf cart makers have been happy to respond to the demand with boosted sales and new models. Companies like E-Z-GO, Club Car, WAEV, Kandi, and others are all rushing new models to the market as more suburban commuters discover that their next electric vehicle might just cost a fraction of what they thought it would – and come with a better breeze, too.
The GEM microcars are classic LSVs that have brought smiles to families’ faces for decades
Electrek’s Take
If I didn’t know any better, I’d say it’s like the Karens are just following me around to poo-poo on any alternative vehicle I happen to drive that week. They’ve hit all my favorites. Pretty soon, they’ll be coming for my electric tractors, too!
But seriously, this feels like déjà vu. The same arguments we’ve heard for years against e-bikes are now being recycled against golf carts: too unsafe, too disruptive, too “different” from the car-centric status quo.
But the reality is, again, quite the same as e-bikes. These are small electric vehicles that make a ton of sense and are totally street legal, at least when they’re built correctly to conform to the proper laws.
They come with a lot of the same benefits, too. They’re cheap to operate, easy to park, perfect for short trips, and they prevent larger cars from needlessly clogging residential streets. Will they ruffle feathers among the kind of folks who have had one too many frisbees land in their yard? Perhaps. But much like e-bikes, their popularity is only going one direction – up.
I leave you with a few images of perhaps my favorite of all, the Kandi Mini. The nay-sayers can pull it from my cold, dead, golf
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With 400 hp and 200 km (125 miles) of all-electric range, Volvo’s new-for-2026 XC70 “long range plug-in hybrid” has made its official debut – and the order books are open. But, unfortunately for American fans of Swedish metal, it’s not available here. Yet.
Volvo first teased the new XC70 as a China-only model back in May, resurrecting an iconic name for the brand and representing an important product addition to the lineup and developed to meet the growing demand for longer-range plug-in hybrids in that market. A lot has changed since then, however – and with the looming threat of tariffs and trade wars on the one hand plus an increasing appetite for EREVs and PHEVs globally and a new CEO at the helm, Volvo’s new XC70 may yet make it to other markets.
“The new XC70 is a very attractive choice for customers who want the benefits of electric driving but are not yet ready to go fully electric,” explains Håkan Samuelsson, new new/old president and chief executive of Volvo Cars. “It is a cornerstone of our electrified product portfolio, a bridge to fully electric cars for our customers, and it will strengthen our presence in the world’s largest car market.”
The new XC70 is built on Volvo Cars’ new Scalable Modular Architecture (SMA) platform for plug-in hybrids, which are intended to deliver the environmental and performance benefits of electric drive with the added flexibility of an ICE backup.
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With 20-30 miles of electric range from a relatively small battery, that promise may ring hollow to many – but with 200 km (nearly 125 miles) of range on tap, it feels like it might be real enough this time out. The company claims its “efficient” allows drivers to drive over 1,200 km (nearly 750 miles) without recharging or refueling.
Active aero trickery
2026 XC70 PHEV; via Volvo Cars.
Part of those big range numbers is battery and engine tech, sure – but another large part is the new Volvo’s aerodynamic efficiency. At the front, a shield-like closed grille that echoes the fully electric Volvo EX90 and EX30 is paired with an active grille shutter (above) that automatically adjusts to minimize drag and optimize cabin climate and cooling.
Meanwhile, the vertical C-shaped taillights at the rear are integrated flush into the rear glass, which Volvo says creates “a sleek, modern look that is both eye-catching and functional.”
Tech-focused interior
Inside, the new XC70 presents a tech-first format, feturing a crisp 12.3″-inch” driver display and a laptop-sized, free-standing 15.4″-inch” central display in a horizontal format that allows the driver to view a large navigation map while still having space for other key functions.
It’s an odd move for the Swedish brand that’s already facing criticism over software bugs. Still, its hybrids have fared better on that front than the EX90, and the XC70’s standout feature — a massive 92-inch augmented reality heads-up display — could deliver that “wow factor” that’s needed to win over any doubters.
On the safety front, the new XC70 is riddled with radars, cameras, and sensors to continuously monitor its surroundings and avoid or mitigate collisions when it can. It also comes equipped with with Volvo-standard safety features like BLIS and City Safety.
For a relaxed driving experience, the XC70 also offers Pilot Assist ADAS Park Pilot Assist, as well as active navigation support.
Production of the new XC70 is already underway and the new long-range PHEV is now available to pre-order in China. No word yet on European (or American, here’s hoping) pricing.
2026 Volvo XC70 gallery
SOURCE | IMAGES: Volvo Cars.
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