Trump escalates feud with Musk, threatens deportation and funding cuts.

Donald Trump and Elon Musk have reignited their feud, with Trump threatening to deport Musk and strip federal funds from his businesses for criticizing Trump's spending bill. Musk is considering a rival political party to challenge Republican lawmakers who support the bill. Trump has also suggested that DOGE should investigate Musk's companies for potential cost savings. Shares of Tesla sank over six percent following Trump's comments.

The ongoing feud between U.S. President Donald Trump and Elon Musk has reached a new peak, with Trump threatening to deport Musk and strip federal funds from his businesses. Musk, in response, is considering the formation of a new political party to challenge Republican lawmakers who support Trump's spending bill. Shares of Tesla (TSLA) have plummeted by over six percent following Trump's comments.

Trump's Threats

Trump has hinted at potential deportation for Musk, stating that he "might have to put DOGE on Elon" [2]. DOGE, the Department of Government Efficiency, was established by Trump to cut government spending. Musk, who previously headed this department, has been critical of the government's spending policies.

Musk's Countermeasures

In response to Trump's threats, Musk has called for a complete cut in government spending and has hinted at the formation of a new political party to challenge Republican lawmakers who support the spending bill [1]. Musk has received overwhelming support for this idea, with over 80% of respondents in a recent poll voting for a new political party [1].

Impact on Tesla Stock

The escalating feud has taken a significant toll on Tesla's stock price. After a dip at the market open, Tesla stock rebounded, but it remains volatile. The stock closed 1.84% lower at $317.66 on Monday, falling further to $311.19 after market hours [3]. Despite the volatility, Tesla's stock demonstrated remarkable resilience, showcasing strong investor confidence [3].

Market Implications

The renewed feud between Trump and Musk has sent shockwaves through the financial markets. The Bitcoin price has also dipped below the key $107K level, with traders citing the feud as a reason for the drop [1]. The feud has the potential to impact other sectors as well, particularly those that rely on government subsidies and spending policies.

Looking Ahead

As the feud continues to escalate, investors will be closely watching both Tesla's stock performance and the political landscape. Musk's potential formation of a new political party could have significant implications for U.S. politics and policy. Meanwhile, Trump's threats to Musk and his businesses could further strain the relationship between the two figures.

References:

[1] https://www.cryptotimes.io/2025/07/01/bitcoin-price-falters-as-elon-musk-vs-donald-trump-feud-heats-up/
[2] https://www.theweek.in/news/world/2025/07/01/can-donald-trump-deport-elon-musk-us-president-says-tesla-chief-could-lose-a-lot-more-as-feud-gets-uglier.html
[3] https://www.dailychhattisgarh.com/news/tesla-tsla-stock-shows-fierce-resilience-rebounding-sharply-after-market-open-dip/12018/