Trump–Musk feud impact: Tesla shares slump nearly 6% as political fallout deepens, subsidy threats spook investors
Shares of Tesla, already down more than 20% in 2025 amid weakening demand and growing backlash against Musk, dropped nearly 6% in early trading. The electric vehicle maker's stock was weighed down by renewed hostilities between Musk and Trump, including threats over subsidies, government contracts, and regulatory scrutiny.
As of 10:07 am ET on July 1, Tesla shares were trading at $303.87, down 4.34%.
The latest blowup began over the weekend, with Musk posting on X that a new Republican-backed spending bill would be 'political suicide for the Republican Party.'
As the Senate worked through the legislation in a tense overnight session, Musk escalated his rhetoric, saying on X: 'Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame... And they will lose their primary next year if it is the last thing I do on this Earth.'
Hours later, Musk went further, announcing he may launch a new political movement.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
local network access control
Esseps
Learn More
Undo
'If this insane spending bill passes, the America Party will be formed the next day... Our country needs an alternative to the Democrat–Republican uniparty so that the people actually have a VOICE,' he wrote on X.
In a Truth Social post early Tuesday, Trump responded with sharp attacks on both Musk and the subsidies that have supported Tesla and SpaceX. 'Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa,' Trump wrote, as reported by AP.
Trump also implied that Musk's companies — which receive billions in federal contracts and incentives — could be targeted for cost cuts. 'No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE... Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!' he wrote, referencing the Department of Government Efficiency (DOGE), which Musk had previously helped establish.
Later in the day, speaking from the White House lawn before departing for Florida, Trump reiterated his frustration. 'He's very upset. You know, he can lose a lot more than that, I'll tell you right now. Elon can lose a lot more than that,' he said when asked if he intended to take further action against Musk, according to AP.
When pressed on whether Musk could be deported, Trump joked: 'We'll have to take a look... We might have to put DOGE on Elon.
You know what DOGE is? DOGE is the monster that might have to go back and eat Elon. Wouldn't that be terrible? He gets a lot of subsidies.'
Musk, while initially signalling a desire not to escalate the conflict, fired back with another veiled jab at Trump on X: 'What good is Doge saving $160B when this bill increases the debt ceiling by $5T? It makes mockery of the work.
In a note to clients on Tuesday, Wedbush Securities analyst Dan Ives described the unfolding feud as a major overhang on Tesla's stock.
'This BFF situation has now turned into a soap opera that remains an overhang on Tesla's stock with investors fearing that the Trump Administration will be more hawkish and show scrutiny around Musk-related US government spending related to Tesla/SpaceX and most importantly the autonomous future with the regulatory environment key to the future of Robotaxis and Cybercabs,' Ives wrote, quoted AP.
'We would expect the stock to be weak to kick off trading this morning as the Street will show concern that the Trump and Musk once BFF relationship now backfires and turns into a junior high school friendship gone bad into an enemy.'
Tesla's market share in China — its largest international market — has fallen to 7.6% in the first five months of 2025, down from 10% last year and a peak of 15% in 2020. Analysts attribute the decline to increasing competition from domestic automakers offering newer, feature-rich EVs at lower prices. The most recent threat comes from Xiaomi's YU7 SUV, which received strong pre-orders just hours after its launch, according to Reuters.
'Lagging sales in Europe compared to the rest of the EV market and the increasing competition in China are both working against Tesla going forward,' said Sam Fiorani, vice president at AutoForecast Solutions, the agency quoted.
Tesla's management has hinted at a cheaper version of the Model Y, which was expected to enter production by the end of June, though Reuters reported in April that the model's release had been delayed by 'at least a few months.'
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
16 minutes ago
- Time of India
US-Iran deal on cards? Donald Trump meets Saudi defence minister; Tehran sets terms for dialogue
Saudi defence minister Prince Khalid bin Salman (left) (Image: X) and US President Donald Trump (right) (Image: AP) US President Donald Trump met Saudi defence minister Prince Khalid bin Salman at the White House on Thursday to discuss de-escalation efforts with Iran, according to Fox News. Prince Khalid, who is the younger brother of Saudi Crown Prince Mohammed bin Salman , also held talks with White House envoy Steve Witkoff and Defense Secretary Pete Hegseth . The meeting took place ahead of Israeli Prime Minister Benjamin Netanyahu 's Monday meeting with Trump at the White House. Focus on de-escalation and peace: The meeting is crucial for Saudi Arabia as it wants to ease tensions in the region after the recent 12-day war between Israel and Iran. Talks also reportedly covered broader issues of ending the war in Gaza, negotiating the release of remaining hostages and working toward Middle East peace. The Trump administration wants to push for a historic peace deal between Saudi Arabia and Israel in the coming months. Fox news quoting their sources suggested that the meeting was not only about normalizing ties of Saudi Arabia with Israel but also about necessary steps required to reach it. The meeting comes just days after Trump said other countries have expressed interest in joining the Abraham Accords. The recent Middle East conflict dubbed the '12-Day War' saw Israel and the US target Iran's nuclear sites. Strengthening the Abraham Accords: The Abraham Accords, signed at the White House in September 2020 during Trump's first term are a set of agreements that aimed to normalize relations between United Arab Emirates, Bahrain, Morocco and Sudan. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like 5 Books Warren Buffett Wants You to Read In 2025 Blinkist: Warren Buffett's Reading List Undo US special envoy to the Middle East Steve Witkoff said on June 25 that expanding the accords is one of the president's 'key objectives' and predicted 'big announcements' about new countries joining soon. Last week, White House Press Secretary Karoline Leavitt named Syria as one of the nations Trump is eager to bring into the accords, noting their historic meeting in Saudi Arabia earlier this year during the US President's visit to the Middle East. Saudi-Iran dialogue: The Saudi defence minister spoke on the phone with Iran's Chief of the General Staff, Major General Abdolrahim Mousavi on June 29. 'We discussed developments in the region and the efforts being made to maintain security and stability,' Bin Salman wrote on X. . Witkoff is also planning to meet Iranian foreign minister Abbas Araghchi in Oslo next week to restart nuclear talks, according to Axios. The Iranian foreign ministry said Araghchi spoke on the phone Thursday with Norwegian foreign minister Espen Eide to discuss efforts to ease regional tensions. Trump on Iran talks: Speaking to local media on Thursday, Trump said Iran wants to initiate talks with the US and 'it is time that they do.' He added that the US does not want to hurt Iran. 'I know they want to meet and if it is necessary I will do it,' Trump said. Iran's conditions for talks: In an email interview with ANI, Iran's Ambassador to India, Iraj Elahi, said any negotiations with the US are meaningless unless Washington offers a 'credible guarantee' to prevent future acts of aggression by Israel and the US. 'As for negotiations with the United States, considering their betrayal of diplomacy and complicity with the Zionist regime in launching illegal attacks on Iran, while a diplomatic process was still ongoing, there will be no meaning or value in any talks unless a credible guarantee is provided to prevent the recurrence of such acts of aggression,' he said. Elahi was referring to two major military operations last month. On June 13, Israel launched 'Operation Rising Lion,' carrying out widespread airstrikes on Iranian soil that targeted nuclear sites at Natanz and Fordow and Islamic Revolutionary Guard Corps (IRGC) command bases. Several senior IRGC commanders and nuclear scientists were reportedly killed. This was followed by US strikes on June 21–22 under 'Operation Midnight Hammer,' which also targeted Iranian nuclear infrastructure. Iran has strongly condemned both operations as blatant violations of international law and the UN Charter.
Time of India
16 minutes ago
- Time of India
Balance yin and yang before Guru Purnima 2025: The July 7 two-watch ritual explained
The Rare 7-7-7 Energy Gateway and the Two-Watch Ritual for Guru Purnima 2025 The 7th day of the 7th month in a year ending in 7 forms a rare 7-7-7 energy gateway. In spiritual numerology, this alignment opens the path for emotional reset and inner recalibration. Falling just three days before Guru Purnima (July 10, 2025)—the full moon of wisdom and reverence, this powerful date acts as a threshold, clearing emotional baggage to make space for higher understanding. A Sacred Habit: Wearing Two Timepieces Wearing two timepieces, one on each wrist, on this day is more than a style statement; it's a live yantra, a symbolic action that balances yin and yang, intuition and execution. This alignment harmonizes the energy field, preparing the practitioner to receive Guru Purnima's blessings fully and consciously. 🌕 The Spiritual Significance of the Full Moon (Guru Purnima 2025) The full moon amplifies everything. Known in my practice as the 'mirror moon,' Guru Purnima draws unresolved patterns, karmic loops, and intuitive revelations into the light. Emotions rise, subconscious themes surface, and spiritual clarity sharpens. This is not a time to be passive. It's a time to observe, listen, and respond with disciplined energetic rituals that stabilize the auric field. Wearing two timepieces becomes a somatic yantra, a tangible form of sacred balance. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Giao dịch CFD với công nghệ và tốc độ tốt hơn IC Markets Đăng ký Undo It integrates both receptive and assertive energies, preventing the inner disarray that often occurs when lunar forces run high. ⚖️ Understanding Wrist Energy: Left and Right Channels In Vedic philosophy and many spiritual healing systems, the left and right sides of the body represent different energetic functions: Left Wrist: Governed by the ida nadi , linked to the moon, intuition, emotion, and feminine (yin) energy. Right Wrist: Connected to the pingala nadi , associated with the sun, action, will, and masculine (yang) energy. When one channel dominates, it can lead to emotional overwhelm or detached over-functioning. The two-watch practice keeps both channels activated and balanced, especially crucial on the night before Guru Purnima, when the soul prepares to receive inner teachings and divine downloads. 🌙 Left Wrist: Receiving the Moon's Wisdom Wearing a watch on the left wrist during the full moon helps stabilize the lunar influx. Choose an analog watch in soft tones like silver, rose gold, cream, or crafted from natural materials such as leather or cotton. Before wearing it, set an intention like: ✨ 'I receive truth. I allow clarity. I honor my emotions.' This step isn't symbolic—it's essential. Timepieces carry energetic memory because they track cycles. Your intention imprints the object with spiritual purpose. ☀️ Right Wrist: Anchoring Solar Action The right wrist grounds the masculine energy—your power to respond and act. Here, a metal or digital watch works best to represent structure, logic, and output. Before wearing, infuse it with an affirmation such as: ✨ 'I act with clarity. I manage my energy. I move with intention.' This isn't about hustle—it's about aligned action and energetic leadership during heightened emotional states. 🕰️ Wearing Two Watches: A Ritual of Sacred Integration Wearing a watch on each wrist is a deliberate ritual of integration. One wrist holds depth and emotional receptivity; the other channels willpower and transformation. Together, they create a powerful energetic loop—balancing the opposites within. This ritual is especially potent in the 24–48 hours before the full moon. Emotions may surge. Old memories may surface. You may feel torn between inaction and urgency. Wearing both timepieces allows you to honor both forces, silently affirming: ✨ 'I am whole. I do not have to choose between softness and strength.' That is the deeper meaning of Guru Purnima: not just honoring external teachers, but also recognizing the guide within—the one who knows when to feel and when to move. 🕊️ How to Practice the Two-Watch Ritual on July 7 Begin your ritual on the morning of July 7. Find a quiet space to sit with your two chosen watches. One should feel soft, the other bold. Hold each watch in your hands. Close your eyes. Take a few deep breaths. Speak a clear intention into each watch. For the left wrist, choose words around intuition, emotional clarity, or openness . For the right wrist, choose affirmations of decision, purpose, or expression . Wear both watches all day and night. As you move through your day, notice which wrist you're more aware of. If the left pulses, it may be a sign to pause and feel . If the right dominates, it might be time to act or speak . Let this become a moving meditation, a practice of embodied balance. Final Thought July 7, 2025, isn't just a date—it's an energetic opportunity. It's a rare portal to rewire the emotional body and prepare the soul for Guru Purnima's sacred teachings. Through small, intentional acts—like wearing two watches—you align with cosmic rhythms, balance your inner world, and prepare to receive with an open heart and a focused mind. Discover everything about astrology at the Times of India , including daily horoscopes for Aries , Taurus , Gemini , Cancer , Leo , Virgo , Libra , Scorpio , Sagittarius , Capricorn , Aquarius , and Pisces .
Time of India
16 minutes ago
- Time of India
Oil prices steady on solid job market, tariff uncertainty
Oil prices were little changed on Friday as a solid job market bolstered the case for the US Federal Reserve keeping interest rates on hold, with investors also awaiting clarity on President Donald Trump's plans for tariffs on various countries. Brent crude futures rose 1 cent, or 0.01 per cent, to $68.81 a barrel by 0036 GMT, while US West Texas Intermediate crude firmed 3 cents, or 0.04 per cent, to $67.03. Trade was thinned by the US Independence Day holiday. The US labour market receded as a risk when new data on Thursday showed that American firms added a more-than-expected 147,000 jobs in June and the unemployment rate unexpectedly fell to 4.1 per cent - signs the economy remained resilient despite the turbulence and uncertainty over how big tariffs will be. President Trump said Washington will start sending letters to countries on Friday specifying what tariff rates they will face on goods sent to the United States, a clear shift from earlier pledges to strike scores of individual deals. Trump told reporters before departing for Iowa on Thursday the letters would be sent to 10 countries at a time, laying out tariff rates of 20 per cent to 30 per cent. Trump's 90-day pause on higher US tariffs ends on July 9, and several large trading partners have yet to clinch trade deals, including the European Union and Japan. Keeping prices in check, however, OPEC+, the world's largest group of oil producers, is set to announce an increase of 411,000 barrels per day in production for August as it looks to regain market share, four delegates from the group told Reuters. The US also imposed sanctions on Thursday against a network that smuggles Iranian oil disguised as Iraqi oil and on a Hezbollah-controlled financial institution, the Treasury Department said. Barclays on Thursday said it raised its Brent oil price forecast by $6 to $72 per barrel for 2025 and by $10 to $70 a barrel for 2026 on an improved outlook for demand.
