Massive blow to Elon Musk, Tesla shares take BIG hit after…, will US president deport world’s richest person?
Shares of electric vehicle giant Tesla, led by Elon Musk, fell on Tuesday amid escalating tensions between the billionaire and former President Donald Trump. The renewed clash over substantial tax breaks and proposed spending cuts intensified as Musk hinted at the possibility of launching a new political party.
Tesla Shares Declines 20% In 2025
Shares of Tesla have already tumbled more than 20% this year as sales of the company’s vehicles erode amid a backlash against Musk and his association with the Trump administration. Tesla sales are plummeting in Europe and China as well. Tesla’s stock fell nearly 6% in early trading.
The resumption of hostilities between Trump and Musk, also the CEO of SpaceX, is always bad news for investors in Musk’s companies.
Elon Musk VS Donald Trump
The most prominent divide in the relationship between Musk and Trump is the president’s big bill. Musk ramped up his criticism of the bill over the weekend, arguing the legislation that Republican senators are scrambling to pass would kill jobs and bog down burgeoning industries.
Musk posted on X on Saturday that the bill would be “political suicide for the Republican Party”. With the Senate working its way through a tense overnight session that dragged into Tuesday, Musk suggested he will work to get members of Congress who vote for the bill out of their seats next year.
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame,” he wrote on X. “And they will lose their primary next year if it is the last thing I do on this Earth.”
The post was viewed 26 million times on the social media platform. A few hours later, Musk followed up with a post claiming he will create a new political party if the bill passes.
“If this insane spending bill passes, the America Party will be formed the next day,” he wrote. “Our country needs an alternative to the Democrat-Republican uniparty so that the people actually have a VOICE.”
Musk’s post about the America Party was viewed 32 million times on X. Trump focused some of his criticisms of Musk on EV mandates and subsidies.
Trump On Elon Musk’s Deportation
When asked by a reporter if he was going to deport Musk, Trump warned that the Department of Government Efficiency, or DOGE, could come back to hurt the billionaire.
“We’ll have to take a look,” Trump said. “We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon. Wouldn’t that be terrible? He gets a lot of subsidies.”
Musk responded on X by saying he would refrain from escalating the conflict, but he took another shot at Trump and Republicans anyway.
“What good is Doge saving $160B when this bill increases the debt ceiling by $5T? It makes mockery of the work,” he wrote.
(With Input From Agencies)
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