Tesla shares in death spiral amid Donald Trump and Elon Musk's bitter feud
- by This is Money
- Jul 02, 2025
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Tumultuous stock: Tesla's stock dropped around 5.5 to 7 percent in pre-market trading on Tuesday
Musk 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 the billionaire's companies.
He even went as far to hint at deporting Musk, who was born in South Africa.
On Truth Social the president wrote: '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.
'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?'
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 per cent in the past five days.
The carmaker didn't immediately respond to DailyMail.com's request for comment.
Ongoing feud: Though Elon Musk and Donald Trump were once a dream team they are now in a bitter public feud
Trump and Musk built an improbable relationship during the 2024 presidential 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 even last a year.
Tesla's stock has ridden a rollercoaster as the high-profile friendship gained strength and later unraveled.
Up and down: Tesla's stock has gone up and down as the CEO and Presidents' relationship has grown stronger and weaker
Initially, Tesla stock spiked after Musk's 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 even cheered at the companies' hardship.
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