Tesla Stock: Tesla stock tumbled 8% Thursday as a heated public spat erupted between CEO Elon Musk and former President Donald Trump over the controversial federal spending bill moving through Congress.
The dispute centers on the bill’s exclusion of electric vehicle (EV) tax credits, a key incentive that Musk has long championed for Tesla’s growth.
Trump, speaking from the Oval Office, expressed surprise and disappointment at Musk’s sharp criticism. “Elon and I had a great relationship. I don’t know if we will anymore,” Trump said, pointing to Musk’s dissatisfaction over the EV credits not being included. Musk responded bluntly on X, the social media platform he owns, with a terse “Whatever.”
The conflict marks a notable shift in Musk’s tone toward the Trump administration. Once a close ally and head of Trump’s Department of Government Efficiency (DOGE), Musk has recently launched a full-scale attack on the spending bill, calling it a “disgusting abomination.”
He has urged followers to contact lawmakers to oppose the bill, warning it would bankrupt America. Tesla shares have fallen 12% this week amid the backlash.
Industry watchers highlight deeper tensions beyond the budget dispute. Musk is reportedly frustrated by the White House’s rejection of Jared Isaacman’s nomination as NASA administrator — a key Musk ally — which may have further soured relations.
Meanwhile, Tesla faces mounting challenges including declining EV sales in Europe, a damaged brand reputation, and competitive pressure from rivals like Waymo in autonomous ride-hailing.
Walter Isaacson, Musk’s biographer, described the billionaire’s reaction as “all in” and unfiltered. “He is seriously upset,” Isaacson said. “When Elon goes all in, he goes all in.”
As Musk’s public feud with Trump intensifies, Tesla investors are closely watching the stock’s volatile performance and the uncertain future of EV incentives in Washington. The unfolding drama underscores the complex interplay between politics, business, and the future of electric vehicles in the U.S. market.