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Musk, Elon

Trump's Threats Against Tesla Send Stock Prices Tumbling

Strategic Insights

— 2 min read

President Donald Trump's comments on electric vehicle subsidies and potentially deporting Tesla's owner Elon Musk sent the company's share prices plummeting on Tuesday. Trump's comments came as the Senate approved the fiscal year 2026 budget bill on a 51-50 vote, which includes a record $5 trillion increase in the debt ceiling. Musk had been vocal in his opposition to the bill, warning that it would lead to job losses and threaten federal subsidies for Tesla, SpaceX, and the Starlink satellite Internet services provider.

Key Takeaways:

  • Tesla's share prices on NASDAQ closed at $300.71 on Tuesday, down from $317.66 on Monday, after Trump suggested the federal government might end its electric vehicle subsidies.
  • The number of shares sold on Tuesday was significantly higher than Monday, with 143.2 million shares traded compared to 76.7 million.
  • Musk led the Department of Government Efficiency for 130 days until the end of May and could potentially be investigated by the Department if Trump follows through on his threats.
  • The Senate approved the fiscal year 2026 budget bill on a 51-50 vote, with Vice President JD Vance casting the tie-breaking vote.
  • The budget bill includes a record $5 trillion increase in the debt ceiling, which Musk claimed would lead to job losses and threaten federal subsidies for Tesla and other companies.
  • Musk has threatened to fund primary challenges for every Republican senator who voted in favor of House Resolution 1.
  • Trump has suggested deporting Musk, a naturalized U.S. citizen, and cutting federal subsidies for Tesla, SpaceX, and the Starlink satellite Internet services provider.

Statistics:

  • Tesla's share prices on NASDAQ closed at $300.71 on Tuesday, down from $317.66 on Monday.
  • The number of shares sold on Tuesday was 143.2 million, surpassing the 76.7 million shares traded on Monday.
  • Musk led the Department of Government Efficiency for 130 days until the end of May.
  • The Senate approved the fiscal year 2026 budget bill on a 51-50 vote.
  • The budget bill includes a record $5 trillion increase in the debt ceiling.
  • Musk has threatened to fund primary challenges for every Republican senator who voted in favor of House Resolution 1.

Sources:

  • Trump's comments were made on Truth Social and ABC News.
  • Musk's opposition to the fiscal year 2026 budget bill was reported by ABC News and CBS News.
  • The Senate's approval of the budget bill was reported by UPI and CNBC.
  • Musk's statement that he might work to create a third political party "that actually cares about the people" was reported by CNBC.

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