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Wall Street in Shock: Tesla Stock Crashes After Rumors Trump Might Invoke the Economic War Act to Freeze Musk’s Assets!

July 10, 2025 by admin Leave a Comment

NEW YORK, NY – Wall Street was thrown into a panic today, with Tesla ($TSLA) stock plummeting over 20% in pre-market trading following explosive rumors that Donald Trump, if re-elected, is considering invoking the International Emergency Economic Powers Act (IEEPA) to freeze Elon Musk’s assets.Tesla stock crashes nearly 7% after Elon Musk's shock 'American Party'  launch rattles Wall Street &

IEEPA, a law typically used to sanction foreign adversaries like Iran and North Korea, would be an unprecedented tool to use against a U.S. citizen and his companies. The mere suggestion that a future administration might weaponize such a powerful act against a domestic rival has sent a chilling effect through the entire market.Wall Street suffers 'ugly' sell-off amid US recession fears, as Musk's Tesla  falls 50% from all–time high – as it happened | Business | The Guardian

“This is financial nuclear war,” exclaimed a lead analyst at Goldman Sachs. “If a president can unilaterally seize the assets of any citizen they deem a ‘threat,’ then the entire foundation of American capitalism is at risk. Every CEO in the country is watching this in horror.”Wall Street slips as Trump-Musk spat rattles Tesla, markets watch US-China  trade talks | Malay Mail

The rumors reportedly stem from a high-level policy meeting where Trump’s economic advisors were allegedly tasked with finding “all available tools” to deal with Musk.Teslas Set on Fire

While the Trump campaign has dismissed the story as “fear-mongering from the fake news media,” the damage has been done. Investors are spooked, not just about Tesla, but about the political risk now attached to any major corporation seen as being on the wrong side of a future administration.

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