The ongoing public feud between Elon Musk and President Donald Trump has taken a toll on Tesla Inc. (NASDAQ:TSLA) stock, which slumped following Musk’s latest criticisms. On Thursday, the stock fell 2.6% during the pre-market session.
What Happened: Tesla’s stock took a hit as Musk’s strong political opinions resurfaced just days after announcing an exit from White House affairs. The CEO intensified his criticism of Trump’s bill since Tuesday and called on the public to reject the bill, cautioning that continued deficit spending could push America towards bankruptcy.
In his latest post on X, Musk said, “Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.”
Musk’s strong stance against the bill has been a point of contention, especially considering his previous ties to the Trump administration, which were seen as beneficial for Tesla. However, Musk’s right-leaning tendencies and support for Trump have caused certain Tesla owners to feel alienated.
These political controversies, combined with declining sales in China and European markets, have contributed to the recent slump in Tesla’s stock. Notably, all of this comes just ahead of Tesla's major robotaxi test set for June 12 in Austin.
The bill in question, also known as Trump’s ‘Big, Beautiful Bill,’ has been a source of concern for Tesla and other EV manufacturers. It abolishes the $7,500 EV Tax Credit, which was a part of former President Joe Biden‘s Inflation Reduction Act, potentially hindering the expansion of electric vehicles and renewable energy in the U.S.
Interestingly, in December, Musk supported the elimination of the EV tax credit.
Benzinga's Edge Stock Rankings underscore Tesla's strong price momentum across short, medium and long-term periods. Additional detailed metrics are available here.
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Why It Matters: These comments come in the wake of Musk’s public criticism of the bill, which he has labeled a “disgusting abomination.” The bill, which is currently facing an uncertain future in the Senate, has been projected by the Congressional Budget Office to add $2.4 trillion to the deficit over the next decade.
Musk’s criticism of the Trump administration’s tax bill has drawn mockery from industry figures like Ross Gerber, CEO and Co-Founder of Gerber Kawasaki. Gerber sarcastically predicted that Musk’s attack on the administration he helped put in power would “work out well for Tesla.”
Despite the controversy, Wedbush Securities’ managing director, Dan Ives, maintains his bullish views on Tesla. He believes that Musk’s return to Tesla is essential for the EV giant’s robotics and AI vision, which he claims represents 90% of the company’s future value.
On Wednesday, Tesla stock declined 3.55% to close at $332.05. Over the last five days, it slumped by over 9%, according to data from Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
