Tesla (NASDAQ:TSLA) shares dropped 6% Tuesday morning as the electric vehicle giant continued to face headwinds following remarks by President Donald Trump, who hinted at the possibility of deporting CEO Elon Musk.
The stock’s decline came after Trump, speaking to reporters outside the White House, said he would “have to take a look at” deporting the South African-born CEO. The comment reflects a further breakdown in the relationship between Trump and Musk, once close allies now embroiled in a public feud.
Their falling out centers on disagreements over federal spending and electric vehicle subsidies. Trump, on his platform Truth Social, claimed Musk might be the largest recipient of government subsidies in history, suggesting that without such aid, Musk would be forced to shut down operations and return to South Africa.
Trump also warned that he might strip Musk’s companies of government support and mentioned that the Department of Government Efficiency (DOGE)—an initiative originally proposed by Musk during Trump’s campaign—could investigate federal funding for space projects and EV production.
The dispute began when Musk criticized a GOP tax plan that would eliminate the $7,500 tax credit for EV buyers. Musk, however, rejected claims that he’s protecting subsidies for his companies, posting on X: “I am literally saying CUT IT ALL. Now.”
