Tesla Inc. (NASDAQ:TSLA) shares fell over 6% on Tuesday morning, as fresh political tensions emerged between CEO Elon Musk and U.S. President Donald Trump. The stock faced pressure following Trump’s remarks suggesting he would “have to take a look at” potentially deporting the South African-born executive.
The public deterioration of what was once a mutually beneficial relationship between Trump and Musk now appears to be moving into adversarial territory, with real implications for Tesla’s investor sentiment and policy-dependent revenue streams.
Trump Threatens Subsidy Cuts, Sparks Investor Anxiety
Speaking to reporters outside the White House, Trump criticized Musk for receiving what he called “more subsidy than any human being in history.” He hinted at revoking federal support for electric vehicles (EVs), rockets, and satellite projects — areas in which Musk’s companies have significant federal engagement.
The tipping point in the feud appeared to be Musk’s vocal criticism of the Republican-backed tax bill, particularly its clause eliminating the $7,500 EV consumer tax credit. Musk responded publicly via his X platform:
“I am literally saying CUT IT ALL. Now.”
Trump’s retaliation included suggesting that the Department of Government Efficiency (DOGE) — ironically, a concept initially pitched by Musk — would now be used to scrutinize taxpayer funding linked to SpaceX and Tesla.
Policy Risk and Public Feud Trigger Stock Selloff
Investors are increasingly factoring in regulatory and subsidy risks as part of Tesla’s valuation model. With an uncertain policy landscape and high exposure to federal incentives, Tesla’s stock has grown vulnerable to politically driven volatility.
To gain real-time insight into how earnings and guidance evolve amid political noise, the
👉 Earnings Calendar API
offers scheduled and historical earnings updates for companies like Tesla — useful for monitoring forward-looking statements.
Tesla last reported Q1 deliveries at 336,691, well below analyst expectations. With Q2 delivery numbers expected soon, the market will closely watch for signs of a recovery or further decline, particularly amid China competition and U.S. policy risk.
Investors Eye Future Guidance Amid Uncertainty
While some analysts see the Trump-Musk fallout as short-term noise, others warn it could materially impact Tesla’s ability to maintain subsidies, partnerships, or regulatory goodwill. This is especially relevant in sectors like autonomous driving, where Tesla is also lobbying for federal approvals.
For ongoing analysis of Tesla’s financial health and margin sustainability, the
👉 Ratios TTM API
delivers key trailing metrics including operating margin, debt ratio, and return on equity — helpful for evaluating resilience under changing political conditions.
Conclusion
Tesla’s latest stock drop reflects more than just volatility — it signals the growing intersection of politics and performance. With delivery numbers due, subsidy policies in flux, and Elon Musk at the center of a high-profile feud with the White House, investors are navigating an increasingly complex risk environment.
