Key Point Summary โ Tesla Shares Plunge
- Musk slams Trumpโs new spending bill
- Trump fires back with deportation threats
- Tesla stock plunges nearly 7 percent
- DOGE may investigate Muskโs 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 Trumpโs proposed tax and spending bill on X, formerly known as Twitter. He warned the billโs $3 trillion price tag would plunge the U.S. into โdebt slavery.โ
Musk didnโt 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 Muskโs companies. He even floated the idea of deporting the South African-born mogul.
โElon may get more subsidy than any human being in history,โ Trump wrote. โWithout 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?โ
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 werenโt always enemies. In 2024, Musk poured record campaign cash into Trumpโs reelection bid. In return, Trump let Musk target regulators that had plagued Tesla, SpaceX, and the Boring Company.
Trump even bought one of Teslaโs electric vehicles.
Regulatory Heat and Political Favor
Federal agencies had raised red flags. The National Highway Traffic Safety Administration warned about Teslaโs self-driving software. SpaceX faced questions from the FCC. The EPA scrutinized land use by the Boring Company.
At first, Wall Street bet Trumpโs friendship would shield Musk. But that bond didnโt survive a full year.
Teslaโs Turbulent Ride Through Politics
Muskโs growing role in Washington came as Tesla struggled. The company faced declining sales, outdated models, and tech delays.
Tesla stock spiked after Trumpโs 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), Teslaโs stock soared 20 percent in three days. That optimism vanished days later.
Musk criticized Trumpโs spending plan as โpork-filled,โ drawing sharp threats from the president.
Renewed Attacks Sink Stock Again
The feud escalated. Trump suggested freezing government contracts with Muskโs 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.
Muskโs Third Party Threat Looms
Musk isnโt done fighting. Heโs threatening to form a third party, the America Party, if Trumpโs bill passes. He also posted a flaming Pinocchio image aimed at lawmakers backing the package.
โIf this insane spending bill passes, the America Party will be formed the next day,โ 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 Teslaโs Future
Investment analyst Bret Kenwell says volatility is now part of Teslaโs DNA.
โVolatility has been the price of admission for the stockโs long-term gains,โ Kenwell told DailyMail.com.
โSome investors embrace the wild moves. Others avoid Tesla entirely for that reason.โ
Muskโs Government Ties Now a Liability?
Muskโs past political proximity, once seen as an asset, now appears to spook markets. Trumpโs threats to investigate or strip subsidies put billions at risk.
Teslaโs next quarterly report arrives tomorrow. Analysts predict a 13 percent drop in deliveries. The companyโs future now hinges on more than car salesโitโs about political survival.
Investors Watch and Worry
With every Trump post, Teslaโs future gets murkier. With every Musk jab, GOP unity cracks.
The war between Americaโs richest man and its most powerful leader is reshaping the markets.
And for Tesla shareholders, itโs a daily thrill rideโwith no brakes in sight.
