Donald Trump's Dig At Elon Musk Over Subsidies Sends Tesla Stock Into A Tailspin
Trump-Musk Feud: Tesla shares dropped sharply after Donald Trump criticized Elon Musk's reliance on government subsidies.
Tesla shares took a sharp hit after US President Donald Trump reignited his feud with Elon Musk- targeting the billionaire's reliance on government support. In a fiery post on Truth Social, Donald Trump accused Elon Musk of being the biggest beneficiary of federal subsidies and suggested that his companies wouldn't survive without taxpayer backing.
'Elon may get more subsidy than any human being in history, by far," Donald Trump wrote, adding, 'Without subsidies, Elon would probably have to close up shop and head back home to South Africa… BIG MONEY TO BE SAVED!!!"
Investor Whiplash Amid A Chaotic Year For Tesla
Tesla has endured a volatile 2025 as the company has faced shrinking sales, an aging product lineup and repeated delays on long-promised technology rollouts. Elon Musk's time in Washington as head of the controversial Department of Government Efficiency (DOGE) further rattled shareholders, many of whom feared his attention had drifted from the business. In May, after Elon Musk stepped down from the DOGE post, Tesla shares briefly soared- jumping 20% in three days. But investor confidence has seesawed ever since, with each twist in the Elon Musk- Donald Trump relationship pushing the stock higher or lower.
First Published:
July 01, 2025, 19:45 IST
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Economic Times
32 minutes ago
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US stock market today: Wall Street edges higher as S&P 500 gains on Trump's Vietnam trade deal, Nasdaq jumps, Dow steady amid weak ADP jobs data
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The Nasdaq Composite performed slightly better, climbing 0.7%, while the Dow Jones Industrial Average hovered near the flatline, reflecting mixed investor sentiment amid both positive trade developments and concerning economic indicators. The US stock market showed mixed movements today, July 2, 2025, with the S&P 500 and Nasdaq Composite trading higher, while the Dow Jones Industrial Average saw modest gains. The markets responded to President Donald Trump's announcement of a Vietnam trade deal, alongside investor caution over weaker-than-expected private payroll data for June. S&P 500 (via SPY ETF): 618.8 , up 0.2% , up Nasdaq Composite: +0.7% , helped by tech recovery , helped by tech recovery Dow Jones Industrial Average: Up nearly 400 points or ~0.9%, led by industrials and materials Tesla stock surged nearly 6% after reporting 384,000 Q2 deliveries, beating expectations. deliveries, beating expectations. Health-care sector dropped sharply, with one major provider falling around 40%, dragging others in the group. Materials and industrials stocks gained, as investors rotated away from tech and into value sectors. ADP private payrolls report showed a decline of 33,000 jobs in June — the first monthly drop since March 2023. jobs in June — the first monthly drop since March 2023. Economists had expected a gain of 100,000 jobs, leading to speculation about a potential Fed interest rate cut at the July meeting. jobs, leading to speculation about a potential Fed interest rate cut at the July meeting. Eyes are now on Thursday's official non-farm payroll report, forecasted to show 110,000 job gains and 4.3% unemployment. Federal Reserve decision on interest rates could shift if job data continues to weaken. Investors remain cautious, with stock indexes near all-time highs and macroeconomic uncertainty in focus. Trump's tax-and-spending bill, which just passed the Senate, is heading to the House and may influence fiscal policy outlook in the coming weeks. Tariff deadlines and ongoing geopolitical developments are also on the radar for market watchers. President Trump's announcement of a new trade deal with Vietnam provided a brief tailwind to the S&P 500 and investor sentiment. Although the president did not offer details about the agreement, the post alone was enough to shift market focus from ongoing global economic uncertainty to potential international cooperation. This deal could mark a strategic step in balancing Asian trade relations, especially as tensions with China continue to weigh on global markets. However, without specifics, analysts remain cautious. Markets are looking for clarity—such as whether the deal covers tariffs, technology exchange, or broader economic cooperation. The optimism sparked by Trump's trade news was tempered by a stark jobs report from ADP, showing that private payrolls declined by 33,000 last month. This marked the first negative reading since March 2023, and it shocked analysts, who had projected a gain of 100,000 jobs. Ross Mayfield, an investment strategist at Baird, told CNBC, 'We've been seeing a weakening of the labor market for months, and I always wondered if it would take a negative payrolls print to get the [Federal Reserve] to pay more attention.' His comment reflects growing concern that the Fed's focus on inflation may be overshadowing emerging cracks in the labor sector. Investors are now speculating whether Federal Reserve policymakers will shift course. A weak job market could become a trigger for a long-anticipated rate cut, especially as inflation pressures begin to cool. The CME Group's FedWatch tool now shows a 25% chance of a July rate cut, up from 20% just the day before. Sam Stovall, chief investment strategist at CFRA Research, believes that a softer jobs report could clear the path. 'If we end up having a fairly weak employment report, then that could allow the Fed to be cutting rates,' he said. Stovall also pointed out that Fed Chair Jerome Powell had previously mentioned that the central bank would have already cut rates if not for Trump's earlier tariff plans. Despite Wednesday's ADP data, traders are now looking ahead to Thursday's official government jobs report. Economists are forecasting a gain of 110,000 jobs for June. However, if that figure misses the mark in a similar way to ADP's number, markets may begin pricing in more aggressive Fed action later this month. This comes as stocks flirt with record highs, making them particularly sensitive to economic data and Federal Reserve decisions. Wall Street's mixed performance—where the Dow surged 400 points on Tuesday while tech-heavy indexes fell—suggests a market still unsure about its direction. In addition to the trade announcement and economic data, investors are watching Trump's tax-and-spending bill, which narrowly passed the Senate on Tuesday. The measure now returns to the House, where some GOP lawmakers remain opposed. The bill could have broad implications for sectors like infrastructure, healthcare, and manufacturing, depending on how funds are allocated. Meanwhile, the market has seen a rotation out of technology stocks and into more defensive sectors such as materials and healthcare, signaling that investors are bracing for potential economic headwinds. Index Move Today S&P 500 +0.2% Nasdaq +0.7% Dow Jones +0.9% (~400 pts) Tech stocks recovered, led by Tesla Health-care stocks under pressure Investors watch job data and Fed signals closely S&P 500 rose 0.2%; Nasdaq gained 0.7%; Dow was flat. President Trump announced a new U.S.-Vietnam trade deal, but offered no specifics. ADP report showed 33,000 private jobs lost in June, vs. 100,000 expected. Fed may consider interest rate cuts if Friday's official jobs data also disappoints. Trump's tax bill passed Senate, still faces GOP resistance in House. With Trump's trade diplomacy making waves and labor market signals flashing warning signs, all eyes are on the upcoming jobs report and the Federal Reserve's July policy meeting. The next few days could shape the trajectory of both the stock market and U.S. economic policy for the rest of 2025. Q1: Why did the S&P 500 rise after Trump's Vietnam trade deal? Because investor sentiment improved after Trump revealed a new trade agreement with Vietnam. Q2: Could weak jobs data lead to a Fed rate cut? Yes, a drop in payrolls could push the Fed to lower interest rates this month.
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Mint
38 minutes ago
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Donald Trump claims Vietnam agrees to 20% import tariffs, zero on US products
US President Donald Trump announced on Wednesday (July 2) that he has struck a new trade agreement with Vietnam, claiming the Socialist Republic will deliver 'unprecedented' access for American companies to the Vietnamese market. 'It is my Great Honor to announce that I have just made a Trade Deal with the Socialist Republic of Vietnam after speaking with To Lam, the Highly Respected General Secretary of the Communist Party of Vietnam,' Trump wrote on Truth Social. According to Trump, under the terms of the deal, Vietnam has agreed to pay a 20% tariff on 'any and all goods' it exports to the United States, and a 40% tariff on any goods that are transshipped through Vietnam. 'In return,' Trump claimed, 'Vietnam will do something that they have never done before—give the United States of America TOTAL ACCESS to their Markets for Trade.' Zero tariffs on US exports He added, 'In other words, they will 'OPEN THEIR MARKET TO THE UNITED STATES,' meaning that we will be able to sell our product into Vietnam at ZERO Tariff.' Trump singled out US auto manufacturers as likely beneficiaries of the agreement, particularly producers of large vehicles. 'It is my opinion that the SUV or, as it is sometimes referred to, Large Engine Vehicle, which does so well in the United States, will be a wonderful addition to the various product lines within Vietnam,' he said. Trump also emphasised his personal rapport with Vietnam's top official. 'Dealing with General Secretary To Lam, which I did personally, was an absolute pleasure,' he wrote.
