andDerek Saul
BySiladitya Ray,
Forbes Staff
andDerek Saul,
Forbes Staff.
Tesla shares fell more than 5% Tuesday after President Donald Trump suggested government subsidies for Musk’s companies—including Tesla—should be scrutinized by the Department of Government Efficiency, as the billionaire CEO attacked Trump’s signature spending bill and threatened to form a new political party, causing Musk’s world-leading fortune to shrink considerably.
Tesla's shares fell more than 5% in premarket trading amid a reignited Trump and Musk feud.
Tesla stock sank more than 6% to below $300, a three-week low, after Trump attacked Musk and claimed his companies received more subsidies “than any human being in history.”
The net worth of Tesla’s largest shareholder Musk plummeted $12 billion as the car company’s stock flailed, by far the largest daily loss of any billionaire tracked by Forbes.
With a $395 billion fortune, Musk remains about $130 billion richer than the next wealthiest person, Oracle chairman Larry Ellison.
Tesla shares are down 13% since the end of May, just before Musk and Trump began publicly arguing, a period in which the S&P 500 benchmark is up 5%.
“This BFF situation has now turned into a soap opera that remains an overhang on Tesla's stock,” Wedbush analyst Dan Ives wrote in a Tuesday note to clients.
The slide in Tesla’s shares came after Trump reacted to Musk’s criticism of his signature budget bill and the billionaire’s threat to fund primary challenges against GOP members voting for this bill. Musk attacked the bill in a series of posts on his X platform and said, “If this insane spending bill passes, the America Party will be formed the next day.” Trump retaliated with a Truth Social Post suggesting that, without federal government subsidies, Musk’s companies, including Tesla and SpaceX, may need to “close up shop,” and the billionaire may be forced to “head back home to South Africa.” The president added cost-cutting agency DOGE, which was previously led by Musk, should examine the cost of the subsidies to Musk’s companies and appeared to suggest there was “BIG MONEY TO BE SAVED” by getting rid of them. Musk responded to the threat by tweeting: “I am literally saying CUT IT ALL. Now.”
“Elon Musk knew, long before he so strongly Endorsed [sic] me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one,” the president said in his post.
Trump Says Without Subsidies Musk Would Have To Close Firms And ‘Head Back Home’ To South Africa—As Feud Reignites (Forbes)
