Tesla Stocks Drop After Trump Suggests DOGE Should Focus on Elon Musk’s Subsidies
Tesla stocks grabbed attention when they fell after a public clash between Elon Musk and Donald Trump.
It started in early June when Trump criticized Musk’s reliance on government subsidies, claiming they prop up companies like Tesla. This drama sent Tesla stocks down over 5% in a single day, though they later bounced back, gaining more than 11% since June 5.
The feud kicked off as Musk, once a Trump ally during the 2024 campaign, spoke out against a tax and spending bill. Trump hit back, saying Musk’s businesses would collapse without subsidies, sparking a quick drop in Tesla stocks.
Readers will find the key details here: what happened, why it matters, and how it affects the stock market.
The Clash Between Musk and Trump
Elon Musk and Donald Trump weren’t always at odds. Musk campaigned with Trump in 2024 and even led the Department of Government Efficiency early in Trump’s administration. But tensions rose when Musk criticized a tax and spending bill in early June, prompting a sharp response from Trump.
Trump claimed Musk gets “more subsidy than any human being in history, by far.” He argued that without this support, Tesla, SpaceX, and Starlink would “close up shop,” saving the country a “fortune.” Musk fired back, saying, “I am literally saying CUT IT ALL. Now.”
The public spat didn’t stop there. Musk later called for a new political party on a Monday, showing the rift hasn’t healed. This back-and-forth keeps Tesla stocks in the spotlight.
How Tesla Stocks Reacted
Trump’s comments hit Tesla stocks hard at first. On a Tuesday, the stock price dropped more than 5%, rattling investors. It showed how fast big statements can shake the stock market.
But the dip didn’t last. Since June 5, Tesla stocks have climbed back up, rising over 11%. Here’s a simple table to show the change:
- Tuesday: Stock price down 5%
- Since June 5: Stock price up 11%
The quick recovery hints at Tesla’s strength. Investors seem to trust the company despite the noise from the feud.
What It Means for the Stock Market
This clash doesn’t just affect Tesla stocks. It ripples through the stock market, creating uncertainty. When big names argue in public, it can make stock prices jump or fall across different industries.
Trump’s focus on subsidies raises questions for other companies too. Firms in electric vehicles or renewable energy might face more pressure if subsidy cuts gain traction. Here are three points to watch:
- Public fights can shake investor confidence for a short time.
- Subsidy debates could hit companies beyond Tesla.
- The stock market often steadies itself after initial shocks.
Tesla’s rebound shows that solid companies can weather these storms. Still, the talk about subsidies keeps investors on edge.
Why the Stock Drop Mattered
The 5% drop in Tesla stocks wasn’t just a random blip. It tied directly to Trump’s words about Musk’s subsidies. Investors worried about what might happen if that support vanished.
Musk’s response didn’t calm things right away. His call to cut all subsidies surprised some, adding fuel to the fire. Yet, the stock’s recovery suggests the market sees Tesla as more than its subsidies.
This moment highlights how fast the stock market reacts to news. It also shows why investors watch public figures like Musk and Trump so closely.
Tesla’s Strength Shines Through
Despite the initial fall, Tesla stocks proved resilient. The 11% climb since June 5 reflects trust in Tesla’s products and leadership. Electric vehicles and innovation keep the company strong, even amid political noise.
Musk’s bold stance might have worried some investors at first. But his willingness to challenge subsidies could signal confidence in Tesla’s future. The stock market seems to agree, at least for now.
Final Thoughts
The drop in Tesla stocks after Trump’s subsidy jab shows how fast the stock market can shift. Yet, Tesla’s quick recovery proves its staying power. The feud between Musk and Trump keeps investors guessing, but the numbers tell a story of resilience.
This isn’t just about one company. It’s a lesson in how public words can move markets, and how strong businesses push through. Keep an eye on Tesla stocks as the subsidy debate rolls on.
Disclaimer:
This content is for informational purposes only and not financial advice. Always conduct your research.