- July 1, 2025
Donald Trump’s Dig At Elon Musk Over Subsidies Sends Tesla Stock Into A Tailspin
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Trump-Musk Feud: Tesla shares dropped sharply after Donald Trump criticized Elon Musk’s reliance on government subsidies.
Tesla CEO Elon Musk is seen.
Tesla shares took a sharp hit after US President Donald Trump reignited his feud with Elon Musk- targeting the billionaire’s reliance on government support. In a fiery post on Truth Social, Donald Trump accused Elon Musk of being the biggest beneficiary of federal subsidies and suggested that his companies wouldn’t survive without taxpayer backing.
“Elon may get more subsidy than any human being in history, by far,” Donald Trump wrote, adding, “Without subsidies, Elon would probably have to close up shop and head back home to South Africa… BIG MONEY TO BE SAVED!!!”
Read more: ‘Could Lose A Lot…’: Trump Taps DOGE To Probe Elon Musk’s Subsidies, Teases His Deportation
Elon Musk responded on X (formerly Twitter) with a restrained but pointed post, saying, “So tempting to escalate this. So, so tempting. But I will refrain for now.”
Tesla Stock Falls Amid Trump-Musk Feud
The jab sent shockwaves through the markets as Tesla stock plunged between 5.5% and 7% in pre-market trading, continuing a decline that has now wiped out nearly 13% of its value in just five days. The electric vehicle giant has faced growing investor concerns in recent months over Elon Musk’s focus.
Investor Whiplash Amid A Chaotic Year For Tesla
Tesla has endured a volatile 2025 as the company has faced shrinking sales, an aging product lineup and repeated delays on long-promised technology rollouts. Elon Musk’s time in Washington as head of the controversial Department of Government Efficiency (DOGE) further rattled shareholders, many of whom feared his attention had drifted from the business. In May, after Elon Musk stepped down from the DOGE post, Tesla shares briefly soared- jumping 20% in three days. But investor confidence has seesawed ever since, with each twist in the Elon Musk- Donald Trump relationship pushing the stock higher or lower.
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New York, United States of America (USA)
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