Tesla shares sink as Trump-Musk feud becomes a serious risk
Why it matters: A few months ago Musk and Trump's close relationship was seen as the key to making Tesla massively more valuable. Now, their split is becoming more of an existential threat to the company.
Catch up quick: Musk has been on the attack over Trump's "big, beautiful bill," promising to start a new political party to oppose the bill's supporters if it passes.
Late Monday night, Trump threatened to use perhaps his most powerful leverage over his former "first buddy."
What they're saying: "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. No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE," Trump posted on Truth Social.
By the numbers: Tesla shares fell about 5% in pre-market trading Tuesday, a decline that would wipe nearly $7 billion off Musk's personal net worth.
The stock is down about 12% since early June when he first started going after the spending bill, which was followed in short order by a full schism with the president.
Between the lines: Even Musk's biggest Wall Street supporters say they fear the possible fallout of the deepening tension between the two men.
"As we discussed this BFF situation has now turned into a soap opera that remains an overhang on Tesla's stock," Wedbush Securities analyst Dan Ives wrote Tuesday morning, likening it to a junior high school friendship gone sour.
The intrigue: Tesla is due to report second-quarter delivery data on Wednesday, with analysts expecting them to drop about 13% from last year amid the ongoing backlash against Musk.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CBS News
32 minutes ago
- CBS News
Los Angeles Mayor Karen Bass set to speak amid Justice Department lawsuit over sanctuary policies
Los Angeles Mayor Karen Bass is expected to speak at City Hall on Tuesday morning, a day after the Department of Justice filed a lawsuit claiming that the city's sanctuary policies are illegal and "interfere with and discriminate against the Federal Government's enforcement of federal immigration law." In the lawsuit, Justice Department prosecutors argue that a city ordinance signed by Bass in December, Prohibition of the Use of City Resources for Federal Immigration Enforcement, prevents U.S. Immigration and Customs Enforcement and U.S. Customs and Border Protection agents from carrying out their duties under federal law in violation of the Constitution's Supremacy Clause. The lawsuit accuses city officials of working to "thwart the will of the American people" by codifying sanctuary policies into law shortly after President Trump's victory in the November 2024 election. Court documents also name the Los Angeles City Council and Council President Marqueece Harris-Dawson as defendants in the lawsuit. U.S. Attorney Bill Essayli for the Central District of California said Monday that the "lawsuit holds the City of Los Angeles accountable for deliberately obstructing the enforcement of federal immigration law." In June, the Trump administration ramped up immigration operations in Southern California, prompting protests in downtown Los Angeles that led to violence between some demonstrators and law enforcement.
Yahoo
32 minutes ago
- Yahoo
Senators to Vote on Trump's Tax Bill After Deal, Thune Says
(Bloomberg) -- Senate Majority Leader John Thune said his chamber will soon vote on passage of President Donald Trump's tax and spending bill after securing enough support to pass the legislation. Struggling Downtowns Are Looking to Lure New Crowds Philadelphia Transit System Votes to Cut Service by 45%, Hike Fares Sprawl Is Still Not the Answer 'I believe we do' have enough votes to pass the bill, Thune said. 'But like I've said I'm of Scandinavian heritage so I've always been a realist so we will see what happens.' The Senate worked through the night on Trump's $3.3 trillion tax and spending package, with Republican leaders still negotiating Tuesday morning with key GOP holdouts. Thune did not specify what changes were made to the bill to convince holdouts to support the measure. 'I hear we're doing well,' Trump told reporters upon arriving in Florida Tuesday. 'I think it's going to be the greatest bill ever passed.' Alaska Republican Lisa Murkowski, a moderate concerned about Medicaid and green energy cuts, appeared to be the central focus of SEnate leaders' attention early Tuesday. Throughout the negotiations in recent days, there have been eight major Republican holdouts. Thune can afford to lose only three senators and still pass the measure. Two — Rand Paul of Kentucky and Thom Tillis of North Carolina — have said they are solidly against it, leaving very little room for error as the South Dakota Republican tries to get to 50 votes on the package. Senate aides huddled on the chamber floor Tuesday morning going line-by-line through last-minute revisions to the bill. Murkowski, whose efforts to protect her home state from Medicaid cuts were rejected by the Senate ruleskeeper, had meetings both on and off the Senate floor throughout the night. She would not divulge early Tuesday whether she'd support the bill. 'The sun is up, I'm going to go have a cup of coffee,' Murkowski told reporters. Murkowski had backed an effort to soften an aggressive planned phase-out of subsidies for wind and solar projects under Trump's tax-and-spending package. The amendment sponsored by Republican Joni Ernst of Iowa would also do away with a proposed new excise tax the Senate bill would slap on wind and solar projects that use components from China and other 'foreign entities of concern.' Ernst, carrying donuts through the Capitol on Tuesday morning, said she didn't think her amendment would ultimately get a vote. The change would risk displeasing fiscal conservatives who have insisted on the more stringent requirements to qualify for the tax credits. 'I don't think they're going to let us' bring up the amendment, she told reporters. 'There's a lot of stuff that went on over night, that kind of waylaid a lot of our plans.' Another moderate holdout, Susan Collins of Maine, said she still has 'reservations' about the bill after the Senate all-nighter. Democrats, angered by the Medicaid cuts in the bill, voted to defeat a Collins amendment that would have doubled the rural hospital fund in the bill to $50 billion, in exchange for a tax increase on some of the highest-earning Americans. As leaders continue to twist arms on the bill itself, they also need to ensure they have enough votes on a final 'wraparound' amendment tweaking the legislation ahead of a vote on final passage. Republican aides workshopped that amendment with the parliamentarian to determine whether changes adhere to the chamber's rules to pass the bill along party lines. Part of the calculus for Senate leaders is to strip language that could threaten the bill's odds in the House, which is planning to vote on the Senate measure later this week. The House's own version of the bill passed by a single vote. The Senate's deeper Medicaid cuts will put pressure on swing-district Republicans, while Freedom Caucus hardliners are angry that the Senate bill would contribute to larger deficits than the House-passed measure. At least one New York Republican — Representative Nick LaLota — has said he'd vote against the bill over a compromise on the state and local tax deduction that he says doesn't do enough to deliver savings to his district. LaLota had supported the House measure. Yet so far, unlike in 2017, Trump has been able to corral his party at the end, with only a few willing to buck the pressure to vote for his signature legislation. --With assistance from Chris Cioffi, Jamie Tarabay and Ken Tran. (Adds Trump remark in the fifth paragraph) America's Top Consumer-Sentiment Economist Is Worried How to Steal a House SNAP Cuts in Big Tax Bill Will Hit a Lot of Trump Voters Too China's Homegrown Jewelry Superstar Pistachios Are Everywhere Right Now, Not Just in Dubai Chocolate ©2025 Bloomberg L.P. Sign in to access your portfolio
The Intercept
33 minutes ago
- The Intercept
ICE Agents Deserve No Privacy
Dozens of immigrants are detained by ICE agents inside the Federal Plaza courthouse in New York City on June 26, 2025, following their legal proceedings. Photo: Lokman Vural Elibol/Anadolu via Getty Images There's nothing subtle about the Gestapo-style tactics of U.S. Immigration and Customs Enforcement agents. Armed gangs of officers, often masked and anonymous, are openly engaged in a white nationalist mission to kidnap many thousands of people — stalking court houses, farms, construction sites, and retail stores, and ripping apart the fabric of communities nationwide. The Trump administration wants America paying attention to this sickening spectacle of mass deportations: broadcasting ICE raids featuring television personality Dr. Phil; meme-posting chained men sent to a gulag in El Salvador; and sharing Secretary of Homeland Security Kristi Noem's various 'ICE Barbie' photo ops. What the Trump administration doesn't want, however, is for anyone to hold ICE agents accountable. Attempts by the public to keep tabs on ICE are provoking predictable and pathetic responses from the government. The latest cause of outrage is ICEBlock, an app that lets users share local ICE sightings. On Monday, ICE Acting Director Todd Lyons condemned the app and called CNN 'reckless and irresponsible' for broadcasting a brief interview with its developer. 'Advertising an app that basically paints a target on federal law enforcement officers' backs is sickening,' said Lyons. 'My officers and agents are already facing a 500% increase in assaults, and going on live television to announce an app that lets anyone zero in on their locations is like inviting violence against them with a national megaphone.' CNN did not, of course, advertise the app. The network interviewed its developer, Joshua Aaron, because it is newsworthy that 20,000 users, many based in Los Angeles, are looking for ways to share information and keep people safe. Public ICE sightings are just that: public. ICEBlock is just one example of a larger story of autonomous, community efforts nationwide to share such information, be it in large Signal threads or social media alerts. Sharing this information is protected speech and a public service. The Trump administration has shown its readiness to take extreme measures against efforts to share information about ICE's troops. In early May, federal agents stormed a home in Irvine, California, in a massive, military-style raid based on suspicions that the residents' son may have been involved with the placement of posters around Los Angeles that shared information about ICE officers. ICE watch groups and rapid-response networks have proliferated as a necessary response to Trump's supercharged deportation agenda. Such efforts are not new but sit in the honorable tradition of the sanctuary movement of the 1980s to protect and shelter refugees, as well as local Copwatch networks, which have existed for over three decades as community efforts against law enforcement violence and impunity. The agency's response is itself in line with a storied tradition in U.S. law enforcement and broader efforts to shore up a white supremacist order. Namely, painting the oppressor as the victim and the real victim as the dangerous threat. In his statement about CNN's ICEBlock segment, Lyons regurgitated the all-too-typical law enforcement claim that 'the lives of officers who put their lives on the line every day' are endangered when their total impunity is threatened. The '500% increase in assaults' against ICE officers that Lyons cited has been a statistic repeated ad nauseam by Trump administration officials as grounds for agents covering their faces and refusing to identify themselves as they grab people from the street or tear them from the arms of their neighbors and loved ones. The number remains completely unverified. Keep in mind, too, that 'assault' in this context is a term practically evacuated of meaning. Tricia McLaughlin, assistant secretary for public affairs at the Department of Homeland Security, said that New York City Comptroller Brad Lander 'was arrested for assaulting law enforcement and impeding a federal officer' when he was detained by masked federal agents while accompanying a person out of immigration court in June. The Justice Department charged New Jersey Democratic Rep. LaMonica McIver with 'assaulting' an ICE officer when the member of Congress attempted to conduct an oversight visit at an ICE detention facility. Both incidents were filmed, and claims that federal officers were assaulted by either politician are nonsense. Trump administration officials have touted footage on social media purporting to show assaults against ICE officers. What these videos overwhelmingly show are unarmed civilians swarmed by militarized forces. During a workplace raid in Santa Ana, California, for example, three federal agents brutally tackled a man, pinned him to the floor, and repeatedly punched his head and neck in a now viral video. The Department of Homeland Security later posted a video on X of the man holding a weed wacker tool in the air while attempting to move away from a heavily armed, masked agent who was spraying some sort of pepper spray in his direction. 'He ASSAULTED federal law enforcement with a WEED WHACKER [sic],' DHS wrote above the video, which showed nothing of the sort. The abject performance of victimhood is absurd, but it's also the foundation of our entire border regime and criminal legal system, which rest on treating poor Black and brown people as a constant threat. Calls for accountability have long been met with patently melodramatic and false claims of danger to law enforcement officials in defense of racist policing. Police departments and unions have for decades employed the strategy of 'blue flu' strikes to protest even minor calls for reform. Hundreds of police officers in New York famously turned their backs on Mayor Bill de Blasio during a fellow officer's funeral in 2014, because the mayor had dared to acknowledge he understood the reasons to protest racist police killings. Such is the entrenched culture of expected impunity. The danger of American immigration policy is faced by immigrants. Being a well-armed officer carrying out state violence is, however, not even in the top 10 most dangerous professions; roofers, loggers, and garbage collectors all have higher rates of fatal injury than regular police officers. Working as an ICE officer is even less dangerous than being an ordinary cop. Yet the entire mass deportations project relies on the lie that poor immigrants of color are a social danger — a myth bolstered by years of bipartisan policies around 'criminal' migrants and anti-immigration discourse. Despite the fact that 65 percent of the 60,000-plus ICE arrests during Trump's second term have been of immigrants with no criminal convictions, Trump's servants like Lyons are nonetheless framing ICE targets as 'dangerous criminal aliens.' The danger of American immigration policy is faced by immigrants. As many as 80,000 people have reportedly died trying to cross into the U.S. through the Southern border in the last decade — each a victim of migration deterrence policies. Thirteen people have died in ICE custody in 2025 alone. A 75-year-old Cuban national died in an ICE detention center just last week; he had lived 60 years of his life in the U.S. When asked by a reporter on Monday about the latest death on his watch, Trump's border czar Tom Homan shrugged. 'I'm unaware of that,' he said. 'I mean people die in ICE custody, people die in county jail, people die in state prisons.' It takes the blind conviction of white nationalism, or the no-less-evil pretenses of a cynical propagandist, to claim that it is federal agents, rather than the immigrants they hunt, who are at risk. So what's the real reason for the masks? ICE agents, of course, have reasons they'd prefer not to be located or identified. They have no desire to face protesters who mobilize in response to reports of their presence. They wear masks to avoid being held personally responsible for carrying out the regime's desired acts of cruelty. Keep in mind that the mask isn't the core problem but a tool that worsens it. Were ICE agents carrying out the project of whitening America with bare faces and name badges, their activities would be just as fascist. Racist policing and border rule did not begin this year and has never been reliant on law enforcement agents acting in secret. But ICE's new tendency to act in anonymous uniformity, without even the possibility for personal responsibility or individual consequences, no doubt helps when carrying out orders that require the extreme dehumanization of others. If we stick to the liberal parlance of transparency and accountability, there should be nothing radical about public oversight and information-sharing, or protest against unpopular state actions. There should also be nothing radical about protecting vulnerable neighbors from fascist round-ups, either.
