Brownsville, Texas — Shares of Tesla experienced a decline on Tuesday following comments from President Donald Trump suggesting that the federal government should review financial support for Elon Musk’s companies. In a social media post late Monday, Trump claimed that Musk benefits disproportionately from government subsidies, insinuating that without them, Musk’s enterprises might struggle to survive.
Trump stated, “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.” He proposed scrutinizing these financial resources, which he argued could lead to substantial savings for the federal budget.
In premarket trading on Tuesday, Tesla’s stock fell by more than 5%. This decline comes as Musk’s ventures, including SpaceX and Starlink, heavily rely on government policies and funding.
Earlier in the day, Trump reiterated his point, indicating that Musk was distressed over potential losses related to electric vehicle regulations. “He’s upset that he’s losing his EV mandate … but he can lose a lot more than that,” Trump remarked, hinting at the broader implications for Musk’s business interests.
Musk, who had previously aligned his political support with Trump during the 2024 campaign, has voiced strong opposition to a tax and spending bill making its way through Congress. This legislation is expected to cut federal support for green energy initiatives and electric vehicles while potentially increasing the federal deficit.
On social media platform X, Musk responded to Trump’s accusations with a straightforward statement: “I am literally saying CUT IT ALL. Now.” This remark emphasizes Musk’s belief in scaling back government involvement, which aligns with his ongoing critiques of the administration’s economic policies.
The public disagreement between the two billionaires had previously led to a notable dip in Tesla’s stock earlier in June. However, after a brief period of improved relations, the stock managed to rebound over 11%. Recently, Musk has renewed his criticisms of the tax bill and has also directed his discontent toward the Republican Party, suggesting on X that there is a need for a new political party that truly represents the people’s interests.
As the tensions between Musk and Trump resurface, market observers will be watching closely to see how these developments will impact both Tesla’s stock and Musk’s various ventures.