Tesla stock plunged 6% early Tuesday following a scathing social media post from Donald Trump accusing Elon Musk of relying heavily on U.S. government subsidies to keep his companies afloat.
In a post on Truth Social, Trump claimed Musk “may get more subsidy than any human being in history” and questioned whether the federal government should continue supporting the Tesla CEO’s sprawling business empire. Trump suggested that without such financial support, Musk “would probably have to close up shop and head back home to South Africa.”
The sharp drop in Tesla shares came on the heels of a 45% year-over-year decline in the company’s EU sales, further fuelling investor anxiety. The combined political tension and weakening performance have rattled the market, erasing recent gains Tesla had made on improved trade sentiment.
According to a February Washington Post investigation, Musk’s companies have received at least $38 billion in federal subsidies, tax credits, contracts, and loans over the past 20 years. That includes funding for Tesla, SpaceX, and other ventures involved in electric vehicles, space technology, and broadband infrastructure.
Trump, who has recently clashed with Musk over GOP tax proposals, warned that eliminating government contracts with Musk could save the U.S. “a fortune.” He added, “No more rocket launches, satellites, or electric car production, and our country would save a FORTUNE.”
Musk responded days earlier, criticising Trump’s proposed “Big Beautiful Bill” as “utterly insane and destructive.” Their social media feud has rekindled volatility in Tesla stock, which is down 21% year-to-date after a tumultuous start to 2025 marked by falling EV demand and geopolitical trade disputes.
Despite signs of recovery in recent weeks, investors now face renewed uncertainty as the political crossfire intensifies. Tesla’s once-bulletproof image as a tech stock darling is being tested like never before.
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