❓WHAT HAPPENED: Tesla shares dropped sharply after a renewed public dispute between Elon Musk and President Donald J. Trump over the ‘One Big Beautiful Bill.’
👤WHO WAS INVOLVED: Tesla CEO Elon Musk, President Trump, and Tesla investors.
📍WHEN & WHERE: The stock drop occurred on Tuesday morning, following Musk’s comments over the weekend and on Monday. The dispute has played out publicly on Musk’s X platform (formerly Twitter) and elsewhere.
💬KEY QUOTE: “The bill would destroy millions of jobs in America.” – Elon Musk
🎯IMPACT: Tesla’s stock dropped 7.1 percent in early trading and remains down 5.4 percent as of late afternoon. The ongoing dispute is causing investor concerns over government scrutiny of Musk’s ventures.
Tesla shares dipped Tuesday morning following a public spat between Tesla CEO Elon Musk and President Donald J. Trump over the ‘One Big Beautiful Bill,’ which has passed the Senate and now heads back to the House for final approval. The electric vehicle company’s stock price fell 23 points in early trading, or 7.1 percent, and was down roughly 5.4 percent at $300.60 per share as of 1:50 PM EST.
Musk reignited the argument on Saturday by criticizing the bill, which President Trump is urging Congress to pass by July 4. Musk described the legislation as a “big, beautiful bill” that would “destroy millions of jobs in America.” On Monday, Musk escalated his rhetoric, suggesting he might form a new political party and support primary challenges against Republicans who vote in favor of the legislation.
President Trump responded Tuesday morning, highlighting the subsidies Musk’s companies receive from the government. He also suggested that the Department of Government Efficiency (DOGE), which Musk previously led before stepping down in May, might investigate government spending linked to Musk’s ventures.
Wedbush tech analyst Dan Ives noted in a report that investor concerns about increased scrutiny from the Trump administration could lead to weak trading early on, but he expects the situation to “settle at the end of the day.” Musk has previously called the reconciliation bill, which funds U.S. Immigration and Customs Enforcement (ICE) operations and border security while cutting taxes on tips, overtime, and social security, “pork-filled” and a “disgusting abomination.”
Tesla stock prices have fallen roughly 21 percent since the start of the year, with Musk’s involvement in political disputes becoming a significant issue for investors. The company is set to release its quarterly earnings tomorrow.
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