Tesla shares fell Tuesday as Tesla CEO Elon Musk and President Trump renewed their dispute over the massive Republican spending bill up for a final vote in the Senate.
The electric vehicle company’s stock price tumbled 23 points in early trading, or 7.1%. Tesla’s
stock was down roughly 13 points, or 4%, at $305 per share as of 10:25 a.m., EST, on Tuesday.
Musk reignited a squabble with the president on Saturday by again criticizing the “big, beautiful bill,” which President Trump is urging Congress to pass by July 4. The billionaire wrote on X that the bill would “destroy millions of jobs in America.” He also suggested on Monday that should the bill pass he would form a new political party and support primary challenges against any Republicans who voted in favor of the legislation.
President Trump clapped back early Tuesday, calling out the amount of subsidies Musk’s various companies receive from the government and suggesting that the Department of Government Efficiency (DOGE) — which Musk led before stepping down late May — look into any spending flowing into Musk’s tech empire.
Wedbush tech analyst Dan Ives expects trading to start off weak on Tuesday, and that the situation between Musk and Mr. Trump will “settle at the end of the day,” he said in a report. Investors fretting over whether the Trump Administration will “be more hawkish” and “show scrutiny around Musk related US government spending,” he added.
Musk first blasted the spending bill earlier this month calling it “pork-filled” and a “disgusting abomination.” His criticisms escalated into a public battle between the world’s richest man and the U.S. President, which eventually died down with the two wishing each other well.
Tesla stock prices have fallen roughly 21% since the start of the year with Musk’s involvement with the Trump administration, a major point of contention for investors. The company is expected to release its quarterly earnings tomorrow.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
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