Tesla shares tumbled after the world’s richest man and the US President reignited their social media war.
Elon Musk, the vocal CEO of Tesla and former advisor for the White House, took to social media to critique President Donald Trump’s proposed tax and spending legislation.
On X, formerly known as Twitter, Musk said the bill’s reported $3 trillion price tag would send the country into ‘DEBT SLAVERY.’
He threatened to fund primary campaigns against Trump-backed candidates that supported the bill.
Trump hit back with a series of threats, suggesting the federal government could launch investigations into Musk’s companies.
He even hinted at deporting Musk, who was born in South Africa.
‘Elon might receive more subsidies than anyone in history, and without them, he might have to shut down operations and return to South Africa,’ Trump shared on his social platform, Truth Social.
‘No more rocket launches, satellites, or electric vehicle production, which would save our country a fortune. Perhaps DOGE should take a thorough look at this?’ he added.
Tesla’s stock dropped around 5.5 to 7 percent in pre-market trading on Tuesday
Tesla’s stock fell between 5.5 and seven points in pre-market trading on Tuesday after the barbs. The stock is down nearly 13 percent in the past five days.
The carmaker didn’t immediately respond to DailyMail.com’s request for comment.
President Trump and Musk built an improbable relationship during the 2024 campaign cycle. Tesla’s CEO backed the Republican with a record sum of cash assistance.
At first, the relationship was mutually beneficial: Musk funneled money into campaign war chests, while Trump gave the CEO the green light to take aim at regulators who had long been a thorn in Tesla’s, Boring Company’s, and SpaceX’s side.
Tesla faced complaints from the National Highway Traffic Safety Administration for its self-driving releases. SpaceX faced investigations from the Federal Communications Commission about its satellite systems. The Environmental Protection Agency complained about Boring Company’s land usage.
At first, investors believed Musk’s closeness to the President could defang the investigative efforts of the federal government.
But the bond didn’t last a year.
Tesla’s stock has ridden a rollercoaster as their friendship gained strength and unraveled.
Elon Musk and Donald Trump initially had a mutually beneficial relationship, with the President even purchasing one of Musk’s EVs
Tesla’s vehicles, which had not received design updates for a longer-than-average time in the automotive industry, saw sales declines at the beginning of the year
Initially, Tesla stock spiked after his preferred candidate won the 2024 election.
But as Musk spent more time in Washington, shareholders worried that the automaker’s CEO was distracted.
At the time, Tesla was sifting through shrinking global sales, an aging vehicle lineup, and continued delays on long-promised technology updates.
The stock price fell to lows in March as these concerns snowballed. Some Democratic officials cheered.
But shares rebounded when Musk left his post as the head of the program-slashing DOGE in late May.
After Musk’s White House exit, investors quickly flooded the company with cash. The stock price rose 20 percent in a three-day period.
That momentum didn’t last. Days after Musk’s White House exit ceremony, the CEO criticized Trump’s tax proposals as ‘pork-filled,’ prompting the President to threaten the CEO.
Investors yanked their funds as Musk’s relationship with President Trump soured.
In June, the stocks rose again when Musk seemed to have made up with the President. They had another spike when the company initially launched its self-driving Robotaxi service in Texas.
For Tesla shareholders, the risky spikes and downturns are par for the course, Bret Kenwell, a US investment analyst with eToro told DailyMail.com.
‘Volatility has been the price of admission for the stock’s long-term gains,’ Kenwell said.
‘As a result, many investors have embraced Tesla’s volatility and wild moves, but others will avoid it completely for this very reason — even if Tesla continues to showcase promising future technologies.’
