The actions of Tesla (TSLA) fell more than 7% on Tuesday in the midst of growing tensions between CEO Elon Musk and President Donald Trump. The president renewed threats to reduce government funds linked to the various Musk companies, including Tesla and the private aerospace giant Spacex.
“Elon can get more subsidy than any human being in history,” Trump published Monday in Truth Social. “Without subsidies, Elon would probably have to close the store and return to South Africa.” He also suggested pulling the incentives of electric vehicles and rocket launches, claiming that he would save the country “a fortune.”
Trump’s latest comments occurred shortly after Musk expressed a strong opposition to the newly modified bill of administration expenses and expenses, which cleared a key obstacle in the Senate during the weekend. The reviewed legislation would accelerate the elimination of fiscal credits from electric vehicles, a measure that could affect the final result of Tesla in an estimated $ 1.2 billion annually. Meanwhile, Spacex has obtained more than $ 21 billion in federal contracts to date.
Reporter: “Are you going to deport Elon Musk?”
Trump: “We will have to take a look. We could have to put Dog to Elon. Do you know what Dege is? The monster that could have to return and eat to Elon. Wouldn’t it be terrible? He gets many subsidies.”
pic.twitter.com/gozb96nsvh– Dogedesigner (@CB_DOGE) July 1, 2025
In its X platform, Musk described the bill as “crazy and destructive”, criticizing it by favoring obsolete industries at the expense of innovative sectors such as clean energy and space technology. The billionaire even floated the idea of ​​forming a new political party, the second proposal of this type in recent weeks, if the bill obtains the final approval.
Tesla’s actions already fell almost 2% on Monday, before the Senate’s voting session, which extended until the early hours of Tuesday. This recession intensified after Musk’s night post in an image generated by the AI ​​that labels politicians who support the increase in debt spending as “liars.”
Trump responded quickly, reiterating his opposition to the mandate of the electric vehicle and insinuating more actions. “Elon Musk knew, long before he supported me so strongly, that I was against the EV mandate,” he wrote.
Spacex’s income is more than NASA’s budget, and reducing EV subsidies would be really better for Tesla.
Continue, Trump, squeeze his trick, humiliated himself and pray to Russia to bring his return astronauts. pic.twitter.com/jndvud4mzz– Space Sudoer (@spaceSudoer) July 1, 2025
The shock revived between Musk and Trump echoes a similar confrontation in June that cleaned more than $ 150 billion of the Tesla market value in a single negotiation day. With each public soap, analysts care about the drama is harming the confidence of the shareholders.
“Investors want Musk to concentrate on Tesla’s operations instead of political disputes,” said Wedbush analyst Dan Iives, in a report. “Being on Trump’s bad side rarely ends well, and the more this battle continues, the more Tesla stock will suffer.”
By aggravating the pressure, the new data on Tuesday revealed the sales of Tesla vehicles in Sweden and Denmark fell during the sixth consecutive month of June. Investors now observe the Global Tesla delivery report, expected on Wednesday, with projections that suggest a decrease of 11% year after year.
The ongoing political row, together with the weakening of international sales, underlines the growing concerns among investors about Tesla’s short term perspective.
Also read: Live Stock Market: Tesla Falls, Dow and Nasdaq Slip as acts of the Senate on the Fiscal Plan and the Law of AI
(Tagstotranslate) Tesla Actions Fallen from July 2025 (T) Trump Elon Musk Feud (T) Trump threatens Tesla Subsidies (T) Spacex Federal contracts Cutted
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