Trump Musk Feud Over EV Subsidies Intensifies Tesla Shares Fall

Former U.S. President Donald Trump and Tesla CEO Elon Musk have engaged in a public dispute over federal subsidies for electric vehicles (EVs). Trump, known for his opposition to EV mandates, has criticized Musk's reliance on government funding, which includes tax credits and government contracts. Musk, in response, has called for fair subsidies across all energy sectors, highlighting the advantages enjoyed by the oil and gas industry.

Trump has proposed cutting EV subsidies, which could significantly impact Tesla's financial landscape. Tesla has historically depended on government funding for its clean energy advancements. Musk has denied having any influence over subsidy terms, suggesting that bills related to these subsidies could be passed without proper scrutiny.

The disagreement between Trump and Musk has brought attention to the allocation of energy subsidies in the U.S. Trump argues that EV mandates limit the automotive market, while Musk advocates for equitable subsidies across different energy sectors. This debate has broader implications for clean energy investments and the overall energy policy of the country.

The escalating feud between Trump and Musk has intensified, with Trump threatening to cut subsidies to Musk's companies. This threat comes in the context of a $5 trillion spending bill, which Trump has dubbed his "Big Beautiful Bill." The bill has raised concerns over potential job losses and economic repercussions, particularly in the EV sector. Musk has vowed to challenge Republican lawmakers over the spending bill, further escalating the tension between the two.

The clash between Trump and Musk has ripple effects across the EV and space industries. The two were once allies on innovation and infrastructure, but their differing views on policy areas such as EV subsidies have led to a public feud. The escalating tension has also fueled talk of a new political party, as Republicans fear fallout before the 2026 elections. The feud has also stoked investor anxiety, with Tesla shares falling in premarket trading following the public spat.

The feud between Trump and Musk is a high-stakes battle with potential implications for the future of the EV industry. The outcome of this clash could have significant repercussions for the sector, as well as for the broader economy. The two figures have taken opposing stances on the issue of EV subsidies, with Trump advocating for cuts and Musk advocating for their continuation. The feud has also highlighted the broader political divide in the U.S., with Republicans and Democrats taking opposing stances on the issue. The outcome of this clash could have significant implications for the future of the EV industry, as well as for the broader economy.