Tesla Stock Sinks as Musk-Trump Feud Escalates Again

Shares of electric vehicle maker Tesla (TSLA) are dropping more than 4% in premarket trading Tuesday as the feud between CEO Elon Musk and President Donald Trump heats up again.

In a post on his Truth Social platform early Tuesday, Trump accused Musk of gaining from subsidies on electric cars. “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump wrote. 

Trump’s signature “One Big Beautiful Bill,” currently being debated by the Senate, includes a provision to eliminate the $7,500 new EV tax credit, a key piece of former President Joe Biden’s efforts to accelerate U.S. EV adoption. 

“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,” Trump added as he lashed out at his former ally. Musk, who also is the CEO of rocket company SpaceX, recently stepped down from running the cost-cutting Department of Government Efficiency (DOGE) in order to focus on his businesses.

Trump’s comments came hours after Musk posted his latest complaints about the tax-and-spending bill on his social media platform X. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk wrote. “And they will lose their primary next year if it is the last thing I do on this Earth.”

Tesla shares entered Tuesday having lost more than a fifth of their value this year. During the initial escalation of the public spat between Musk and Trump on June 5, shares tumbled 14%, erasing more than $150 billion from Tesla’s market capitalization.