TSLA329.65010.24%
GM53.2200.01%
F11.1600.01%
RIVN13.7000.8%
CYD25.1000.91%
HMC30.000-0.355%
TM168.650-1.83%
CVNA347.5201.42%
PAG165.0300.91%
LAD307.7500.09%
AN196.7600.35%
GPI411.0204.92%
ABG229.9600.44%
SAH76.9400.64%
TSLA329.65010.24%
GM53.2200.01%
F11.1600.01%
RIVN13.7000.8%
CYD25.1000.91%
HMC30.000-0.355%
TM168.650-1.83%
CVNA347.5201.42%
PAG165.0300.91%
LAD307.7500.09%
AN196.7600.35%
GPI411.0204.92%
ABG229.9600.44%
SAH76.9400.64%
TSLA329.65010.24%
GM53.2200.01%
F11.1600.01%
RIVN13.7000.8%
CYD25.1000.91%
HMC30.000-0.355%
TM168.650-1.83%
CVNA347.5201.42%
PAG165.0300.91%
LAD307.7500.09%
AN196.7600.35%
GPI411.0204.92%
ABG229.9600.44%
SAH76.9400.64%
Dealers' #1 source for auto industry news, content, coaching & analysis

Tesla shares fall as feud between Trump, Musk escalates

Trump threatens to revoke billions in subsidies as Musk criticizes EV tax cuts and warns of political fallout.

The public feud between President Donald Trump and Tesla CEO Elon Musk escalated on Tuesday. Trump threatened to revoke billions of dollars in federal subsidies to Musk’s companies after Musk renewed his public criticism of Trump’s “Big Beautiful Bill,” a tax-cut and spending bill that narrowly passed the Senate on Tuesday.

Here’s why it matters:

Elon Musk’s involvement with the Trump administration has caused significant damage to his brand and companies. Tesla’s sales declined for the fifth consecutive month in Europe, and analysts predict that Tesla’s Q2 deliveries could decrease by as much as 20%. The elimination of the federal EV tax incentives would likely slow consumer demand for electric vehicles and strain dealership margins tied to new and used EV inventory.

Sign up for CBT News’ daily newsletter and get the latest industry stories delivered straight to your inbox.

Key Takeaways:

  • Tesla’s bottom line will shrink further
    JP Morgan analysts estimate that the elimination of the federal EV tax credit will cost Tesla $1.2 billion in earnings and 17% of operating income.
  • Tesla’s shares are dropping—again
    Following President Trump’s subsidy threats, Tesla’s shares dropped by 5.5%.
  • Elon Musk’s hypocrisy
    Although Musk has publicly stated that government subsidies should be eliminated, his companies have greatly benefited from billions in tax credits and policy benefits.
  • Robotaxi rollout now faces political headwinds
    Musk is betting Tesla’s future on a successful launch of its robotaxi service. However, it could face regulatory delays as tensions with the White House grow.
  • EV market volatility widens beyond Tesla
    Shares of other EV makers, such as Rivian and Lucid, also fell on Tuesday, revealing broader investor concerns over subsidy cuts.

Stay up to date on exclusive content from CBT News by following us on Facebook, Twitter, Instagram and LinkedIn.

Don’t miss out! Subscribe to our free newsletter to receive all the latest news, insight and trends impacting the automotive industry.

CBT News is part of the JBF Business Media family.

Jasmine Daniel
Jasmine Daniel
Jasmine Daniel is a staff writer and reporter for CBT News. She holds a BFA in Writing from the Savannah College of Art & Design and has over eight years of experience in SEO, digital marketing, and strategic communication. Her storytelling skills bring breaking news to life, delivering timely, impactful stories that resonate with readers.

Related Articles

Latest Articles

From our Publishing Partners