Trump and Musk Fire Shots; Tesla Stock Plummets
Tesla stock is falling fast as Musk and Trump feud with one another over governmetn spending while Musk moves back to Tesla.
Quick overview
- President Trump and Elon Musk are engaged in a public feud on social media, leading to a significant drop in Tesla's stock price.
- Trump accused Musk of profiting excessively from government subsidies and suggested that investigations could save taxpayer money.
- Musk retaliated by criticizing Trump and his supporters, indicating potential political repercussions for Congress members who backed Trump's initiatives.
- Tesla's stock has fallen over 5% amid declining sales and a negative public image, although there are some positive sales trends in specific markets like Norway and Portugal.
President Donald Trump and Tesla (TSLA) CEO Elon Musk are fighting once more with social media posts attacking one another, causing Tesla stock to drop more than 5% on Tuesday.
Trump called out Musk on the Truth Social media platform, saying that Musk is making big profits from subsidies. He accused Musk of obtaining more subsidies “than any human being in history.” Trump further stated that the country could be saving big money if DOGE (the Department of Government Efficiency) looked into Tesla and SpaceX’s rocket launches and electric car manufacturing.
Musk has been posting angrily on X against Trump and his administration as well, saying that Congress members who voted for Trump’s “One Big, Beautiful Bill” should “hang their head(s) in shame!” Musk has promised that he will make them lose their primary next year.
The fight is on between the two former partners since Musk has stepped down from DOGE to go back to work as the head of Tesla. Since he returned to the company, they have launched a self-driving taxi service in Austin, Texas.
How Tesla Is Faring
Will Trump go after Tesla because of his ongoing feud with Musk? That may be what has investors worried as the company’s share price dropped dramatically on Tuesday after the two fired off angry posts at one another on their respective social media platforms.
They both have massive audiences and plenty of resources at their disposal, and it may be Musk who has the most to lose by their fighting. Public opinion has already swayed against Tesla in a big way over the last few months, and if the company loses support from Trump’s fans, then it may be in dire trouble.
Tesla sales have been dropping around the world in 2025, causing their stock to fall to $301 per share. At the start of 2025, Tesla stock was valued at $379 per share, so there is a lot of lost ground to make up.
That major stock decline is partly due to falling sales and partly due to the company’s poor public image created by the political divisiveness of its CEO. Tesla sales fell 10% in June of this year and have declined from six consecutive months in Denmark and Sweden. It is not all bad news for the electric car manufacturer, though, as their car sales have risen in Norway by 54% in the last six months. Tesla sales are also up in Portugal 7.3% for the month of June.
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