Tesla’s stock tumbled over 5% on Tuesday morning as US President Donald Trump intensified hostility toward Elon Musk by openly criticizing the massive taxpayer subsidies Musk’s companies receive. Late at night, Trump tweeted on Truth Social that “Elon may get more subsidy than any human being in history.” He also suggested that the Department of Government Efficiency, or “DOGE,” investigate Musk’s financial ties to the federal government.
This comment comes just a few weeks after Musk left his position as an advisor to DOGE, a department he helped establish while Trump was in office. Investors were concerned about any changes to laws or funding after Trump’s comments, as Tesla, SpaceX, and Starlink are all heavily reliant on federal contracts and clean energy incentives.
The Bigger Picture: Criticism of Green Subsidies
Musk’s firms have benefited greatly from government contracts, tax subsidies, and renewable energy awards over the years. According to ProPublica, Tesla has received billions of dollars in subsidies over the past decade. The internet magnate recently spoke out against the Republican tax bill, claiming that the government should spend less money on everything, including programs that benefit his own enterprises.
Musk answered on X (formerly Twitter) with “I am literally saying CUT IT ALL,” demonstrating his displeasure with both main parties.
What It Means for Investors
This political upheaval could indicate that the federal government is rethinking its approach to supporting the EV and space businesses. As the Biden-Trump contest heats up and Musk distances himself from traditional political allies, market watchers anticipate more ups and downs. Investors who want to know what’s going on in this high-stakes debate should listen closely to Tesla’s forthcoming earnings call.
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