Trump vs. Musk: The Political Clash That Shook Tesla’s Stock
So, today’s big headline is causing a stir across the markets and tech world alike—Trump is going after Elon Musk. Yeah, you heard that right. The U.S. President, Donald Trump, has publicly hinted that his administration might “take a look” at deporting Elon Musk, and that's just the tip of the iceberg.
It all started when Musk took a hard stance against Trump’s new budget bill, which Musk bluntly labeled a “disgusting abomination.” According to Musk, this bill is packed with reckless spending that threatens to balloon the national deficit and destroy millions of American jobs. Now remember—this is the same Elon Musk who once supported Trump, donated hundreds of millions to his campaign, and even led the Department of Government Efficiency (DOGE). But those days are clearly over.
Trump, in classic fashion, fired back. Speaking to reporters outside the White House, he said, “We’ll have to take a look,” when asked if Musk could be deported. And then came the social media flamethrower: Trump posted on Truth Social that Musk should be examined by DOGE for receiving massive government subsidies. His tone was unmistakable—he accused Musk of benefiting more than anyone in history from federal aid and implied the country could save a fortune by cutting him off.
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Now here’s where things get intense. Musk responded on X (formerly Twitter) with a sharp retort: “I am literally saying CUT IT ALL. Now.” That’s right—he’s calling for a full stop to all subsidies, even the ones that benefit his own companies. It's a bold move, but it's also deeply political. Musk claims the bill eliminates the electric vehicle (EV) mandate, which is a major blow to Tesla, and he's not holding back.
The tension has had real consequences. Tesla stock dropped more than 6% in pre-market trading following the public fallout. Investors are clearly spooked. SpaceX, Musk’s other powerhouse, has about $22 billion in U.S. government contracts. And Tesla is depending heavily on the success of its new robotaxi project, which still needs regulatory approval. All of this is now hanging in the balance because of an escalating political feud.
What’s fascinating here is that Musk is effectively biting the hand that used to feed him. And Trump? He’s reminding everyone that his support can be just as quickly withdrawn. Trump even mocked Musk’s roots, suggesting that without U.S. subsidies, Musk would be packing up and heading back to South Africa.
The deeper issue, though, is what this means for the markets and American tech innovation. If this turns into a full-scale regulatory crackdown or if federal funding dries up for Musk’s ventures, we could see ripple effects across the tech and energy sectors. Tesla has already faced sliding sales in markets like Sweden and Denmark. A loss of U.S. government support could tip the balance further.
So where does this go from here? Hard to say. Musk is calling for a new political party, dubbing the current system the “Porky Pig Party.” Trump is digging in. The Senate is advancing the budget bill despite internal resistance, and Musk is vowing revenge on any politician who supports it.
Bottom line: this isn’t just a billionaire vs. president drama. It’s about power, policy, and the future of one of America’s most important tech empires. If you’re holding Tesla stock or watching the U.S. EV market, this feud is something to take seriously. The fallout might just be getting started.
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