Tesla Inc (NASDAQ:TSLA) experienced a notable decline in premarket trading on Tuesday, as tensions reignited between U.S. President Donald Trump and Tesla CEO Elon Musk. Trump accused Musk of receiving disproportionate government subsidies and called for a federal review of Tesla’s support.
According to 24-hour trading data from Robinhood (NASDAQ:HOOD), Tesla’s shares tumbled as much as 6.4%, falling to $297.35.
On his social media platform Truth Social, Trump urged the Department of Government Efficiency (DOGE) to investigate the extent of federal assistance granted to Tesla. He cautioned, “Elon may get more subsidy than any human being in history.”
Trump further asserted, “Without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
Elon Musk responded swiftly on X, declaring, “I am literally saying CUT IT ALL. Now.”
The conflict between Trump and Musk largely centers on Musk’s vocal opposition to a sweeping tax and spending cut bill that Trump supports and which is currently under Senate consideration.
Musk’s objections focus on the bill’s potential to significantly increase federal debt and expenditures. He also warned that it could hinder his ongoing efforts with the Department of Government Efficiency to reduce government spending.
Independent analysis suggests that the bill could add $3.3 trillion to the national debt over the next decade if passed in its current form.
Musk has repeatedly condemned the legislation as overly large and inefficient. His stance was a key factor in a public fallout with Trump in early June, which culminated in Musk stepping down from his role at DOGE.
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