Tesla Shares Drop 5% Amid Musk's Criticism of US Spending Bill

Tesla Inc. (TSLA.US) shares experienced a decline on Thursday, dropping nearly 5% to $316. This downturn came amidst a flurry of criticism from Tesla CEO Elon Musk, who publicly lambasted the Trump administration's spending bill. Musk described the bill as a "shameful monster" and a "disgusting waste," asserting that it would plunge the United States into "debt slavery." He urged Congress to reject the legislation, emphasizing the detrimental impact it would have on the nation's financial health.

Musk's outspoken stance was partly driven by the bill's reduction in tax incentives for electric vehicles, which directly affects Tesla's interests. The company has been facing challenges in the European market, with its electric vehicle sales in May showing significant declines in several key countries. In Germany, Tesla sold 1,210 units, a 36% decrease compared to the same period last year. Meanwhile, the overall electric vehicle market in Germany saw a 45% increase in sales. In the UK, Tesla's sales plummeted by over 45%, while the broader electric vehicle market grew by 28%. This decline pushed Tesla to the fifth position in the UK market, behind competitors such as Volkswagen, BMW, Audi, and Skoda. In Italy, Tesla's sales dropped by 20%, contrasting with the overall market's 40% growth in electric vehicle sales.

Musk's criticism of the spending bill has been relentless, with him continuing to voice his disapproval on social media platforms. He has called on his over 200 million followers to contact their representatives in Congress to oppose the bill, describing it as "unbearable" and urging them to take action to prevent its passage. This public campaign by Musk highlights his commitment to influencing policy decisions that impact Tesla and the broader electric vehicle industry.