Tesla Shares Drop as Donald Trump Threatens Subsidy Cuts Following Elon Musk Clash

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Prices of Tesla shares fell by about 5% in pre-market trading today amidst a heated exchange between Donald Trump and Elon Musk.

Musk has been on the attack over the president’s prospective legislation conveniently called by Trump the “big, beautiful bill.” The exchange heated up again in the past few hours, after the tech mogul promised to go so far as to start a new political party to oppose the bill’s supporters if it passes.

Screenshot 2025-07-01 at 15.46.39 — Source: X

Trump didn’t take it lightly and immediately leveraged his political powers in response, saying:

Electric cars are fine, but not everyone should be forced to own one. Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!

Musk was quick to counter, urging the president to actually go ahead and cut the subsidies. Meanwhile, Trump also said that he could “los a lot more than” the EV mandate, with some speculators immediately beginning to discuss the possibility of a deportation.

Meanwhile, the odds of Elon Musk creating his own political party called “America’s Party,” skyrocketed on Kalshi, currently standing at 40%.