Tesla Stock Drops 5% Amid CEO's Dispute with U.S. President Over Tax Bill

On July 1, local time, the CEO of Tesla engaged in a heated dispute with the U.S. President over the "Big and Beautiful" tax and spending bill, putting the company at risk of government subsidy scrutiny. This dispute led to a significant drop in Tesla's stock price, which closed the day down by more than 5%, marking a three-week low.

The "Big and Beautiful" bill, championed by the U.S. President, aims to reduce taxes by 4 trillion dollars and cut at least 1.5 trillion dollars in spending over the next decade. This includes the elimination or reduction of "green subsidies" introduced during the previous administration, putting new energy vehicle projects at risk of losing tax incentives.

On June 30, the CEO of Tesla posted numerous tweets criticizing the bill, stating that supporters of the legislation should be ashamed and threatening to defeat these supporters in the upcoming party primaries. In response, the U.S. President retorted that the CEO of Tesla had received more government subsidies than anyone in history, suggesting that without these subsidies, Tesla might have to shut down and return to South Africa. The U.S. President also hinted at the possibility of having the government efficiency department review Tesla's subsidies, and when asked if he would expel the CEO of Tesla, he responded, "I'll consider it."

The dispute between the two figures caused Tesla's stock price to plummet shortly after the U.S. market opened on July 1, dropping by approximately 7% at one point. By the end of the trading day, Tesla's stock price stood at 300.71 dollars, down 5.34%, resulting in a market value loss of approximately 540 billion dollars (around 380 billion yuan).

Tesla's stock performance has been frequently impacted by the ongoing disputes between the CEO and the U.S. President. As early as June 5, the publicized conflict between the two led to a 14.26% drop in Tesla's stock price, causing a market value loss of over 150 billion dollars.

On that day, the CEO of Tesla retweeted two posts from the U.S. President dating back to 2012 and 2013, criticizing the Republican Party's increase in the debt ceiling. This was seen as a sarcastic response to the U.S. President's push for the "Big and Beautiful" bill. The U.S. President expressed disappointment in the CEO of Tesla, leading to a series of heated exchanges. The U.S. President labeled the CEO of Tesla as "crazy" and threatened to revoke Tesla's government subsidies and contracts, while the CEO of Tesla announced that SpaceX's "Dragon" spacecraft would withdraw from U.S. manned space missions.

Following this period of heightened tension, relations between the two figures eased, and Tesla's stock price saw a significant rebound. However, recent escalations in their conflict have once again impacted Tesla's stock performance negatively.

On June 28, the CEO of Tesla posted that the latest draft of the Senate's tax and spending bill would "destroy millions of jobs in the U.S. and cause significant strategic damage to the country." The next day, the U.S. President commented on his relationship with the CEO of Tesla, describing him as "a bit depressed" and suggesting that his recent actions were inappropriate.

When asked about the reasons for the CEO of Tesla's depression, the U.S. President responded, "The mandatory policies on electric vehicles are difficult for him. I don't want everyone to be forced to own an electric vehicle."

In addition to the ongoing disputes, Tesla is facing other challenges in the global market. In June, Tesla's registrations in Sweden decreased by 64.4% compared to the same period last year, and sales in Denmark dropped by 61.6%, marking the sixth consecutive month of decline in the European market.

Tesla has also announced price increases for some of its models, which could influence consumer purchasing decisions and add uncertainty to its market outlook. Tesla is set to release its second-quarter sales data this week, with market expectations suggesting a 12% year-over-year decline in deliveries. Investors are closely monitoring Tesla's performance to see if it can alleviate current market pressures.