The political fallout comes as Tesla sales weaken in Europe, China, and key U.S. markets, even as broader EV demand rises. The dispute adds new uncertainty around Tesla's public image and consumer base,

Tesla shares dropped more than 5% on Thursday on a day otherwise devoid of news for the electric vehicle maker, leading traders to speculate that Musk's increasingly pointed rhetoric suggests strain in the relationship that has benefited his sprawling empire of businesses.