Tesla shares fell Tuesday as Tesla CEO Elon Musk and President Trump renewed their dispute over the massive Republican spending bill up for a final vote in the Senate.
The electric vehicle company’s stock price fell $18.98, or 6%, to $298.50 in morning trade.
Musk reignited a squabble with Mr. Trump on Saturday by again criticizing the “big, beautiful bill,” which President Trump is urging Congress to pass by July 4. The Tesla founder and CEO wrote on X that the bill would “destroy millions of jobs in America.” He also suggested on Monday that, should the bill pass, he would form a new political party and support primary challenges against any Republicans who voted in favor of the legislation.
President Trump clapped back early Tuesday, noting the enormous federal subsidies Musk’s various companies receive from the government and suggesting that the Department of Government Efficiency — which Musk led before stepping down late May — look into any spending flowing into Musk’s empire.
Despite the flare-up, Wedbush technology analyst Dan Ives expects the conflict between Musk and Mr. Trump to die down moving forward. But for now, investors are fretting over whether the Trump administration will “be more hawkish” and “show scrutiny around Musk related US government spending,” he said in a research note.
Musk first blasted the spending bill earlier this month calling it “pork-filled” and a “disgusting abomination.” His criticisms escalated into a public battle between the world’s richest man and the U.S. President, which eventually died down with the two wishing each other well.
Tesla stock prices have fallen roughly 21% since the start of the year with Musk’s involvement with the Trump administration, a major point of contention for investors. The company is expected to release its quarterly earnings tomorrow.
