Tesla shares tumble after Trump says DOGE should look at Elon Musk's subsidies
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Shares ofTeslawere under pressure on Tuesday after President Donald Trump said in a late night social media post that the federal government should look into cutting subsidies for Elon Musk's companies.
"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!!!," the Truth Socialpostsaid.
"DOGE" refers to the so-called Department of Government Efficiency, which Musk led early in Trump's administration before leaving his government role inlate May
Tesla's stock was down more than 5% in premarket trading Tuesday. Some of Musk's other ventures, including SpaceX and Starlink, are heavily reliant on government policy.
Trump appeared to reiterate his idea to cut the subsidies when speaking to reporters on Tuesday morning.
"He's upset that he's losing his EV mandate ... but he can lose a lot more than that, I can tell you. Elon can lose a lot more than that," Trump said.
Musk, who campaigned with Trump in 2024, has been publicly critical of the tax and spending bill making its way through Congress. The bill appears set to cut government support for green energy and electric cars while raising the projected federal deficit, relative to current law.
On social media site X, Muskrespondedto a screenshot of Trump's post with "I am literally saying CUT IT ALL. Now."
Musk's criticism of the administration's spending plans appeared to be one reason for apublic feudbetween the two billionaires in early June, which led to a sell-off in Tesla's stock. Then, tensions appeared to cool, and Tesla's stock had rebounded more than 11% since June 5.
However, the Tesla CEO has started his criticism of the tax bill again, and also taken aim at the Republican Party. On Monday, Musk said on X that it was "time for anew political partythat actually cares about the people."
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