Tesla Shares Slump 5.5% as Trump Takes Aim at Musk Over EV Subsidies

Tiger Newspress07-01

Tesla shares slumped 5.5% in premarket trading. President Donald Trump lashed out at Elon Musk on Tuesday, accusing the Tesla Inc. and SpaceX chief executive officer of benefiting excessively from government electric vehicle subsidies.

“Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,” Trump said in a Truth Social post.

“No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!,” he added.

This comes after Musk slammed the US Senate’s latest version of Trump’s multi-trillion dollar tax bill, warning that the cuts to EV and other clean energy credits would be “incredibly destructive” to the country.

Tesla has benefitted from a popular $7,500 consumer tax credit for electric vehicles that Trump’s bill will eliminate. The automaker is set to release second-quarter sales later this week that will likely show a further slump in demand.

“Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,” Trump said. “It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.”

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Comments

  • ICEsh00ter
    07-01
    ICEsh00ter
    $Tesla Motors(TSLA)$  bromance is over  
  • Laksh85
    07-01
    Laksh85
    Musk was so busy cutting all the so called "unwanted government subsides/funding" now getting his own subsidies cut! Karma is a boomerang, for sure!
    • andy66: 
      Actually, all of this is manipulated by capital behind the scenes.Large funds are buying put options and they are starting to have conflicts.The large funds gain profits and sell their options, and then they reconcile.
  • Aivern
    07-01
    Aivern
    $Tesla Motors(TSLA)$  lol the stock is dropping because everyone knows tesla was built on the back of ev credits. Elon's impulse control is equivalent to an emo teenager so he will act like it doesnt matter, but even his simps wont be able to buy enough from him to save his company if all federal funding is removed. This will resolve though, because after the 2 of them are done pmsing, they will realize teaming up is way more profitable than feuding. 
    • andy66: 
      Actually, all of this is manipulated by capital behind the scenes.Large funds are buying put options and they are starting to have conflicts.The large funds gain profits and sell their options, and then they reconcile.
  • breAkdaWn
    07-01
    breAkdaWn
    Rubbish statements. Mr T days are really numbered!! its easy to hit at people n countries, who cant fight bck!! but not Now.. GAME ON!!!
  • Guavaxf30
    07-01
    Guavaxf30
    This is totally nuts. Just as we wonder why Tesla share price can run up just because of the trial Robotaxi, why should anyone be reacting so much with the new Trump/Musk feud?  These are all not unexpected. We knew if was going to happen. But I guess the only thing I can say now is Elon Musk was really foolish with how he spent the $250 million helping to elect Trump.
    • Jamjam77: 
      There is no hope in Tesla , soonest or later Tesla will report lose in quarterly . As a global business man never step in politics. A golden rule he forget about .
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