Tesla stock plunges more than 7% as Elon Musk reignites feud with Donald Trump

Tesla’s stock tumbled more than 7% on Tuesday, erasing billions in market value from the electric car maker as the rift between CEO Elon Musk and President Donald Trump reignited.

Tesla stock was down $22.78, or 7.17%, to $294.88 per share as of 9:40 a.m. Eastern Time — a sharp drop from its previous close of $317.66.

The Nasdaq-listed stock’s slide followed a fresh round of attacks from Trump on his Truth Social platform, in which he threatened to ax federal subsidies for Musk’s companies, including Tesla and SpaceX.

“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,” Trump wrote early Tuesday.

“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? BIG MONEY TO BE SAVED!!!”

The barrage came just hours after Musk blasted the Senate’s advancement of Trump’s sweeping tax and spending bill, which includes provisions to slash electric vehicle tax credits earlier than expected.

The move could cost Tesla an estimated $1.2 billion in annual profit. In a post on X, Musk slammed the bill as “utterly insane and destructive [with] handouts to industries of the past while severely damaging industries of the future.”

Musk, who formerly headed Trump’s now-defunct federal agency DOGE — the Department of Government Efficiency — has repeatedly criticized the legislation, arguing it breaks campaign promises to cut government spending.

“Anyone who campaigned on the PROMISE of REDUCING SPENDING , but continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will see their face on this poster in the primary next year,” Musk wrote Monday night, attaching an AI-generated image of Pinocchio labeled “liar.”

Trump’s response came shortly after.

“Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,” the president wrote, signaling a deeper political split between the two billionaires.

The war of words marks a return to the tensions seen earlier in June, when a similar social media slugfest wiped more than $150 billion from Tesla’s valuation in a single day — a clear signal that investors are uneasy about the political risks tied to Musk’s high-profile clashes.

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Wedbush analyst Dan Ives warned in a note Tuesday that the ongoing drama was wearing thin with shareholders.

“The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle … which has turned into a life of its own in a roller coaster ride since the November elections,” Ives wrote.

“At the end of the day being on Trump’s bad side will not turn out well … and Musk knows this and Tesla investors want this back and forth to end,” he added.

Adding further pressure to the stock, new data showed that Tesla’s sales in Sweden and Denmark fell for the sixth consecutive month in June.

The company is set to report global vehicle deliveries on Wednesday, with analysts forecasting an 11% year-over-year decline.

The Post has sought comment from Musk, Tesla and the White House.