Tesla Stock Dips After Trump Criticizes Musk’s Reliance on Government Support
Tesla shares took a hit on Tuesday following comments from former President Donald Trump, who called for a federal review of subsidies tied to Elon Musk’s companies. The remarks, posted on Trump’s Truth Social platform late Monday, reignited tensions between the two high-profile billionaires and cast new scrutiny on Musk’s business empire, which includes Tesla, SpaceX, and Starlink.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”Trump concluded by suggesting the Department of Government Efficiency — nicknamed “DOGE” — should thoroughly investigate Musk’s subsidies:“Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”DOGE Reference and Musk's Government Ties
“DOGE” refers to the Department of Government Efficiency, a short-lived initiative within Trump’s administration. Musk briefly led the department during Trump’s first term but stepped down from the role in late May of this year.The timing of Trump’s latest remarks coincides with renewed discussions in Congress over a controversial tax and spending bill. The proposed legislation would roll back support for electric vehicles and green energy initiatives — a blow to several of Musk’s ventures, which have benefited from such policies in the past.Stock Market Reaction and Policy Backdrop
Following Trump’s social media post, Tesla shares fell by 4% in early Tuesday trading. Market analysts attributed the decline to concerns about potential policy shifts that could undermine Tesla’s competitive edge. SpaceX and Starlink, two of Musk’s other high-profile companies, also depend on federal contracts and regulatory support.Trump doubled down on his remarks during a media briefing Tuesday morning.“He’s upset that he’s losing his EV mandate … but he can lose a lot more than that, I can tell you,” the former president warned. “Elon can lose a lot more than that.”Musk Responds with Open Criticism
Musk did not stay silent. Responding to a screenshot of Trump’s post on social media platform X, Musk replied, “I am literally saying CUT IT ALL. Now.” The Tesla CEO’s statement appeared to signal support for eliminating all federal subsidies — not just for his own companies, but across the board.His latest remarks reflect a broader shift in Musk’s political tone. On Monday, he voiced dissatisfaction with both major political parties, posting on X that it was “time for a new political party that actually cares about the people.”A Tumultuous Relationship and Market Uncertainty
The public spat between Trump and Musk is not new. The two men clashed in early June over similar issues, prompting a sharp drop in Tesla’s stock. Though the situation appeared to stabilize shortly after, with Tesla rebounding more than 11% since June 5, the renewed rhetoric is reviving market uncertainty.Musk’s opposition to the current tax bill — especially its impact on green energy — may once again place him at odds with Republican leadership. With political alliances shifting and policy negotiations ongoing, investors are bracing for further volatility.
Tesla shares took a hit on Tuesday following comments from former President Donald Trump, who called for a federal review of subsidies tied to Elon Musk’s companies. The remarks, posted on Trump’s Truth Social platform late Monday, reignited tensions between the two high-profile billionaires and cast new scrutiny on Musk’s business empire, which includes Tesla, SpaceX, and Starlink.
“Elon may get more subsidy than any human being in history, by far,” Trump wrote. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”Trump concluded by suggesting the Department of Government Efficiency — nicknamed “DOGE” — should thoroughly investigate Musk’s subsidies:“Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!”DOGE Reference and Musk's Government Ties“DOGE” refers to the Department of Government Efficiency, a short-lived initiative within Trump’s administration. Musk briefly led the department during Trump’s first term but stepped down from the role in late May of this year.The timing of Trump’s latest remarks coincides with renewed discussions in Congress over a controversial tax and spending bill. The proposed legislation would roll back support for electric vehicles and green energy initiatives — a blow to several of Musk’s ventures, which have benefited from such policies in the past.Stock Market Reaction and Policy Backdrop
Following Trump’s social media post, Tesla shares fell by 4% in early Tuesday trading. Market analysts attributed the decline to concerns about potential policy shifts that could undermine Tesla’s competitive edge. SpaceX and Starlink, two of Musk’s other high-profile companies, also depend on federal contracts and regulatory support.Trump doubled down on his remarks during a media briefing Tuesday morning.“He’s upset that he’s losing his EV mandate … but he can lose a lot more than that, I can tell you,” the former president warned. “Elon can lose a lot more than that.”Musk Responds with Open Criticism
Musk did not stay silent. Responding to a screenshot of Trump’s post on social media platform X, Musk replied, “I am literally saying CUT IT ALL. Now.” The Tesla CEO’s statement appeared to signal support for eliminating all federal subsidies — not just for his own companies, but across the board.His latest remarks reflect a broader shift in Musk’s political tone. On Monday, he voiced dissatisfaction with both major political parties, posting on X that it was “time for a new political party that actually cares about the people.”A Tumultuous Relationship and Market Uncertainty
The public spat between Trump and Musk is not new. The two men clashed in early June over similar issues, prompting a sharp drop in Tesla’s stock. Though the situation appeared to stabilize shortly after, with Tesla rebounding more than 11% since June 5, the renewed rhetoric is reviving market uncertainty.Musk’s opposition to the current tax bill — especially its impact on green energy — may once again place him at odds with Republican leadership. With political alliances shifting and policy negotiations ongoing, investors are bracing for further volatility.
