Tesla stock price sinks as Musk and Trump feud over spending bill

Tesla shares took a hit on Tuesday as CEO Elon Musk and President Trump engaged in a renewed dispute over the massive Republican spending bill currently up for a final vote in the Senate. The electric vehicle company’s stock price dropped by 6% to $298.50 in morning trade in response to the ongoing feud between Musk and the President.

Musk reignited the conflict with Mr. Trump over the weekend by criticizing the “big, beautiful bill” that the President is pushing Congress to pass before July 4. Musk expressed concerns that the bill could potentially harm millions of American jobs. He even hinted at the possibility of forming a new political party and supporting primary challenges against any Republicans who vote in favor of the legislation.

In response, President Trump fired back early Tuesday, pointing out the substantial federal subsidies that Musk’s companies receive from the government. He suggested that the Department of Government Efficiency, previously led by Musk before his resignation in late May, should investigate any government spending flowing into Musk’s ventures.

Despite the public spat between Musk and Mr. Trump, Wedbush technology analyst Dan Ives anticipates that the tension will subside in the future. However, investors are currently concerned about the Trump administration potentially scrutinizing Musk-related US government spending.

This recent clash is not the first time Musk has criticized the tax spending bill. He previously referred to it as “pork-filled” and a “disgusting abomination.” The ongoing feud has contributed to Tesla’s stock price dropping by approximately 21% this year. Additionally, the company’s sales in Europe have declined, and Musk’s association with the Trump administration has led to some customers in the US feeling alienated.

Tesla is scheduled to release its quarterly earnings report on Wednesday, shedding light on the company’s financial performance amid the ongoing controversy. It remains to be seen how the conflict between Musk and President Trump will impact Tesla’s future prospects and market standing.

Mary Cunningham, a reporter for CBS MoneyWatch, provided insights into the ongoing dispute between Musk and Mr. Trump. With a background at “60 Minutes,” CBSNews.com, and CBS News 24/7, she brings a wealth of experience to her reporting on business and finance news.