चाबी छीनना
- Tesla shares dropped over 7% as the Trump-Musk feud reignited, wiping out billions in market value.
- President Trump threatened to scrutinize and potentially eliminate federal subsidies for Musk’s companies, including Tesla and SpaceX.
- Elon Musk’s public criticism of Trump’s spending bill and threats to support primary challengers against Republican lawmakers escalated the conflict.
- Investor anxiety is mounting over the risk of political retaliation against Tesla, further destabilizing its stock.
- The feud now poses an existential threat to Tesla’s future, with Wall Street increasingly wary of the fallout.
Trump-Musk Feud Reignites
The high-profile relationship between President Donald Trump and Elon Musk, once seen as a strategic alliance, has dramatically deteriorated. The resuming feud sent shockwaves through financial markets and the tech sector. The Trump-Musk feud reignited this week after Musk launched a barrage of criticism against Trump’s flagship tax and spending proposal. He labeled it as “insane and destructive” and warned it would balloon the national debt by $33 trillion over the next decade. Musk’s opposition included a threat to back primary challengers against Republican lawmakers who support the bill and a call for a new political movement.
Trump responded with personal and policy threats, suggesting that Musk could be forced to “head back to South Africa” if federal subsidies for his companies were withdrawn. He directed the Department of Government Efficiency (DOGE)—an agency Musk briefly led—to review the billions in government support that have fueled Tesla, SpaceX, and other Musk ventures. Trump’s rhetoric quickly escalated. He even raised the specter of deportation and the elimination of electric vehicle tax credits. Such a move could cost Tesla an estimated $1.2 billion annually.
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The market’s reaction to the Trump-Musk feud reigniting was swift and severe. Tesla shares tumbled over 7% in early trading on Tuesday, erasing billions from the company’s market capitalization. This sharp decline follows a broader trend. Tesla stock is down more than 20% in 2025. The latest drop was triggered directly by Trump’s threats to cut federal support and Musk’s increasingly combative political posture.
Investor sentiment has soured amid fears that Trump’s administration could follow through on threats to terminate government contracts and subsidies for Tesla and SpaceX. Wall Street analysts warn that the feud has become a persistent “soap opera” overhang on Tesla’s stock. Musk’s staunchest supporters expressed concern that the deepening rift could become an existential threat to the company’s future.
Political Fallout and Existential Risks
The Trump-Musk feud reigniting has transformed from a personal spat into a major political and business risk. Musk, a naturalized U.S. citizen originally from South Africa, has become a lightning rod for criticism over government support for the tech sector. Trump’s willingness to publicly threaten deportation and regulatory action underscores the high stakes for both men—and for the industries they represent.
For Tesla, the timing could not be worse. The company is set to report second-quarter delivery data, with analysts expecting a 13% year-over-year drop amid ongoing backlash against Musk’s leadership. The renewed hostilities have further spooked investors, amplifying concerns about weakening demand, regulatory scrutiny, and political retaliation.
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