Key Point Summary – Tesla Shares Plunge

• Musk slams Trump’s new spending bill
• Trump fires back with deportation threats
• Tesla stock plunges nearly 7 percent
• DOGE may investigate Musk’s empire
• Musk vows revenge against GOP backers
• Public reacts with shock and anger
• Investors brace for more turbulence

Musk and Trump Feud Explodes Online

Tesla shares tumbled Tuesday morning after Donald Trump and Elon Musk reignited their fierce social media war. The clash sent shockwaves through the markets.

Elon Musk, the billionaire CEO of Tesla and former White House advisor, blasted Trump’s proposed tax and spending bill on X, formerly known as Twitter. He warned the bill’s $3 trillion price tag would plunge the U.S. into “debt slavery.”

Musk didn’t stop there. He vowed to bankroll primary campaigns against Republicans supporting the legislation. That declaration sparked an instant response.

Trump Threatens Musk With DOGE Probe

President Trump returned fire on Truth Social. He accused Musk of hypocrisy and hinted at launching a federal investigation into Musk’s companies. He even floated the idea of deporting the South African-born mogul.

“Elon may get more subsidy than any human being in history,” Trump wrote. “Without subsidies, Elon would probably have to close up shop and head back home to South Africa. Perhaps we should have DOGE take a good, hard look at this?”

Markets React as Tesla Stock Sinks

Within hours, Tesla stock nosedived. The drop ranged from 5.5 to 7 percent in pre-market trading. In the past five days alone, the stock has lost nearly 13 percent of its value.

The electric carmaker did not respond to requests for comment. But investors were left rattled as political theater crossed into economic chaos.

A Love Affair Gone Sour

Trump and Musk weren’t always enemies. In 2024, Musk poured record campaign cash into Trump’s reelection bid. In return, Trump let Musk target regulators that had plagued Tesla, SpaceX, and the Boring Company.

Trump even bought one of Tesla’s electric vehicles.

Regulatory Heat and Political Favor

Federal agencies had raised red flags. The National Highway Traffic Safety Administration warned about Tesla’s self-driving software. SpaceX faced questions from the FCC. The EPA scrutinized land use by the Boring Company.

At first, Wall Street bet Trump’s friendship would shield Musk. But that bond didn’t survive a full year.

Tesla’s Turbulent Ride Through Politics

Musk’s growing role in Washington came as Tesla struggled. The company faced declining sales, outdated models, and tech delays.

Tesla stock spiked after Trump’s win, but fell sharply as concerns mounted. Some Democrats celebrated the slide. But investors cheered when Musk left his DOGE role in May.

DOGE Exit Brings Short-Lived Hope

When Musk resigned from the Department of Government Efficiency (DOGE), Tesla’s stock soared 20 percent in three days. That optimism vanished days later.

Musk criticized Trump’s spending plan as “pork-filled,” drawing sharp threats from the president.

Renewed Attacks Sink Stock Again

The feud escalated. Trump suggested freezing government contracts with Musk’s companies. SpaceX, which relies on defense and satellite deals, could be in the firing line.

Tesla investors panicked. They yanked their funds, bracing for another storm.

Musk’s Third Party Threat Looms

Musk isn’t done fighting. He’s threatening to form a third party, the America Party, if Trump’s bill passes. He also posted a flaming Pinocchio image aimed at lawmakers backing the package.

“If this insane spending bill passes, the America Party will be formed the next day,” Musk warned.

Rollercoaster Year for Tesla Stock

Tesla has become a magnet for wild market swings. The stock rose again when Musk and Trump appeared to reconcile in June. It soared once more during the Texas Robotaxi launch.

But every high has come with a brutal low.

Wall Street Split on Tesla’s Future

Investment analyst Bret Kenwell says volatility is now part of Tesla’s DNA.

“Volatility has been the price of admission for the stock’s long-term gains,” Kenwell told DailyMail.com.

“Some investors embrace the wild moves. Others avoid Tesla entirely for that reason.”

Musk’s Government Ties Now a Liability?

Musk’s past political proximity, once seen as an asset, now appears to spook markets. Trump’s threats to investigate or strip subsidies put billions at risk.

Tesla’s next quarterly report arrives tomorrow. Analysts predict a 13 percent drop in deliveries. The company’s future now hinges on more than car sales—it’s about political survival.

Investors Watch and Worry

With every Trump post, Tesla’s future gets murkier. With every Musk jab, GOP unity cracks.

The war between America’s richest man and its most powerful leader is reshaping the markets.

And for Tesla shareholders, it’s a daily thrill ride—with no brakes in sight.