Quick overview

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Tesla’s stock fell roughly 4% on Thursday as CEO Elon Musk called U.S Congress to “KILL” President Donald Trump’s spending proposal.

The world’s richest man changed his remarks regarding the administration in recent days by calling the bill a “disgusting abomination” and threatening primary lawmakers who support it.

Tesla’s market correction occurred as Musk concluded his tenure as Trump’s Department of Government Efficiency. The EV manufacturer saw a 22 percent rally in May amid weak sales figures.

This year, shares have dropped more than 20%, far from the peak of $488.54 in December 2024. Musk has appeared to be at odds with the Trump administration and launched a full-scale attack against the president’s signature tax-cut bill since his special government employee term ended on Friday.

Tesla faced significant challenges, such as a decline in brand recognition in the West and a sharp dip in sales of its electric cars in key European markets.

Tesla is also under pressure to introduce a driverless, long-delayed ride-hailing service in Austin this month. Although Tesla is testing driverless vehicles in that market, according to Musk, Waymo, its main rival, already has a significant commercial robotaxi service in collaboration with Uber.

According to Isaacson, Musk’s biographer, the tech magnate was also annoyed by Trump administration officials who opposed Jared Isaacman’s appointment as NASA’s chief administrator.