Tesla shares dropped 5.3% on Tuesday after Donald Trump called for a review of government subsidies to Elon Musk’s companies, escalating a renewed feud between the two.
Trump’s comments, made on social media and later to reporters, criticised the level of federal support Musk’s ventures receive and suggested significant savings could be made by cutting subsidies. He also referenced the Department of Government Efficiency, a loosely defined initiative Musk briefly led before stepping down in May.
The clash follows Musk’s public opposition to the Republican tax and spending bill, which is expected to reduce support for electric vehicles and clean energy while increasing the federal deficit. Musk has also recently criticised the broader direction of the Republican Party.
The latest remarks mark a return to tensions that earlier triggered a sell-off in Tesla stock, though shares had rebounded in recent weeks before Tuesday’s drop. Musk’s other ventures, including SpaceX and Starlink, remain heavily reliant on government contracts and policy decisions.
