Latest news with #governmentsubsidies
Yahoo
03-07-2025
- Automotive
- Yahoo
Tesla stock sinks as Trump threatens to cut subsidies across Musk's sprawling empire
Tesla stock (TSLA) sank 5% Tuesday as the feud between CEO Elon Musk and President Trump reignited, with the president once again threatening to cut government subsidies across Elon Musk's businesses, including 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 on his social media platform, Truth Social, early Tuesday. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE," Trump added. "Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!" Read more about Tesla's stock moves and today's market action. The threats followed Musk's criticism of Trump's "big, beautiful" tax and spending bill over the weekend after the Senate advanced it with last-minute changes that would eliminate electric vehicle tax credits — which benefit Tesla customers — earlier than expected and add $1 trillion to the bill's original price tag. The megabill was passed by the Senate on Tuesday, bringing it one step closer to becoming law. Its provision ending the EV credit would cut an estimated $1.2 billion from Tesla's annual profit. Meanwhile, SpaceX has received more than $21 billion in federal contracts, according to US spending data. In one of his series of posts on his own platform, X, Musk called the bill "utterly insane and destructive [with] handouts to industries of the past while severely damaging industries of the future." Musk's critiques continued into the trading week, with the tech mogul proposing the formation of a new political party for the second time last month. Tesla shares dropped 1.9% Monday as the Senate began voting on amendments to the bill in what's called a vote-a-rama, which dragged into Tuesday morning. Late Monday night, Musk posted an AI-generated image of Pinocchio with the word 'liar' stamped across it, writing: 'Anyone who campaigned on the PROMISE of REDUCING SPENDING , but continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will see their face on this poster in the primary next year.' Trump's Truth Social post threatening subsidies on Musk's empire followed just a few hours later. 'Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,' the president wrote. The barbs revived a feud between the world's two most powerful men in early June that erased more than $150 billion in value from Tesla in a single day. Those exchanges last month saw Trump and Musk trade a wide array of insults on social media, exposing the risk of the electric vehicle stock's "Musk premium." Musk has been highly critical of Trump's "big, beautiful" bill since he left his role in D.C. running the newly created federal agency DOGE, the Department of Government Efficiency, which aimed but ultimately failed to eliminate government debt with highly controversial spending cuts. 'The jabs between Musk and Trump will continue as the Budget rolls through Congress but Tesla investors want Musk to focus on driving Tesla and stop this political angle ... which has turned into a life of its own in a roller coaster ride since the November elections,' Wedbush analyst Dan Ives wrote in a note to clients Tuesday morning. 'At the end of the day being on Trump's bad side will not turn out well ... and Musk knows this and Tesla investors want this back and forth to end,' Ives wrote. Also driving Tesla shares down Tuesday, fresh data showed Tesla's sales dropped for the sixth straight month in Sweden and Denmark in June. The company is set to report overall global deliveries on Wednesday. Wall Street expects deliveries to slide 11% from the prior year. Laura Bratton is a reporter for Yahoo Finance. Follow her on Bluesky @ Email her at
Yahoo
01-07-2025
- Business
- Yahoo
Trump Threatens to Sic DOGE on Elon Musk, Maybe Deport Him
President Donald Trump has threatened to cut billionaire Elon Musk off completely by sending his own so-called Department of Government Efficiency after him. In a post on his social media platform Truth Social, Trump pointed out that Musk had long enjoyed crucial government support and billions of dollars in government contracts, which have historically allowed the mercurial CEO's firms to stay afloat. "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. "No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE," he added. "Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!" And he wasn't done yet. "We might have to put DOGE on Elon," Trump told reporters while preparing to board the Marine One helicopter. "DOGE is the monster that might have to go back and eat Elon. Wouldn't that be terrible?" Asked whether he might deport Musk, Trump didn't rule out the possibility. "I don't know," he told media at the White House, adding that "we'll have to take a look." Musk, for his part, has stuck to his guns, reiterating his stance that electric vehicles shouldn't get any subsidies in the first place — despite his EV maker Tesla massively benefiting from tax credits in the past. "I am literally saying CUT IT ALL," Musk replied in a tweet. "Now." The bitter exchange shows that tensions clearly remain between the two. And that may not bode well for Tesla, which is still reeling from persistently crashing sales, enormous public backlash, and a disappointing and chaotic launch of its long-awaited robotaxi service. Trump's comments follow a dramatic falling out between the unlikely pair of frenemies. Musk previously took aim at the president's so-called "big, beautiful" tax and spending bill, excorciating it as a "disgusting abomination" — words that greatly angered the president. In early June, Trump threatened to "terminate Elon's Governmental Subsidies and Contracts," mockingly adding in a Truth Social post that "I was always surprised that Biden didn't do it!" In light of the scorching attacks, Musk lost his temper, making questionable accusations that he eventually walked back. But he's not done yet. Last week, he called the bill "utterly insane and destructive," vowing to create his own political party if it were to pass the Senate this week. Whether there's any credibility to Trump's latest threats to cut Musk off remains to be seen. The president has an extensive track record of making empty threats and flip-flopping on key policy decisions — though often while throwing his closest allies under the bus. But analysts say the president is holding the winning hand, especially considering Musk's well-documented hotheadedness and vindictive nature. Tesla is in a precarious position and could certainly benefit greatly from government support and subsidies — despite its CEO publicly advocating against them. "Musk cannot stop himself," Stock Trader Network chief strategist and Tesla investor Dennis Dick told Reuters. "He is getting on Trump's bad side again. Tesla international sales have fallen significantly and if he loses U.S. subsidies, US sales are likely to fall as well." "Musk needs Trump, Trump does not need Musk," he added. More on Musk and Trump: Elon Musk Posts "No Kings" Message as Protests Rage Against Trump
Bloomberg
01-07-2025
- Business
- Bloomberg
Feud Between Tesla's Elon Musk and Trump Escalates
The feud between Elon Musk and President Donald Trump keeps on escalating. Trump threatened to withdraw government subsidies from Musk's companies. Musk has been stepping up his criticism of Trump's tax and spending bill. Ed Ludlow reports. (Source: Bloomberg)
Telegraph
01-07-2025
- Business
- Telegraph
Trump threatens to force Musk ‘back to South Africa' over tax bill criticism
Donald Trump has threatened to review government subsidies afforded to Elon Musk's companies after the Tesla billionaire attacked his flagship tax bill. In a post on Truth Social on Tuesday, Mr Trump warned that his former political ally would be forced to 'close up shop and head back to South Africa' if federal support for his businesses was withdrawn. The warning came after Mr Musk intensified his criticism of Mr Trump's so-called 'Big, Beautiful Bill', which pledges to slash taxes for the rich and make sweeping cuts to welfare programmes such as Medicaid. Mr Musk posted on X he would make it his mission to oust Republican senators who vote in favour of the legislation. The 54-year-old also threatened to put their faces on a poster, accusing them of being a 'liar' and of 'voting to increase America's debt' by $5 trillion. Anyone who campaigned on the PROMISE of REDUCING SPENDING , but continues to vote on the BIGGEST DEBT ceiling increase in HISTORY will see their face on this poster in the primary next year — Elon Musk (@elonmusk) July 1, 2025 The posts prompted a furious response from Mr Trump, who is pressuring senators to pass the legislation before his self-imposed deadline of July 4. 'Elon Musk knew, long before he so strongly endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign,' Mr Trump wrote on Truth Social. He added Mr Musk 'may get more subsidy than any human being in history, by far' and he would 'probably have to head back home to South Africa' with them. '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!!!' In response, Mr Musk appeared to suggest the president should cut his subsidies, writing on X: 'I am literally saying CUT IT ALL. Now. ' The public exchange marks the collapse of a fragile truce between the pair several weeks ago, following a bitter row in which Mr Musk called for Mr Trump's impeachment and accused him of appearing in the Jeffrey Epstein files. At the time, Mr Musk also threatened to form a rival political party, before later apologising. That earlier dispute was also rooted in opposition to Mr Trump's 'Big, Beautiful Bill'. Mr Musk is understood to have spent at least $250 million supporting Mr Trump's re-election campaign, and was later appointed to lead the newly formed Department of Government Efficiency, which made headlines after sacking around 120,000 federal employees. The Tesla chief executive, who stepped down as head of Doge last month, branded the tax bill a 'disgusting abomination' for inflating the national debt. He has repeated his calls for the creation of a new 'America Party' and pledged to fund it the day after the bill is passed. Mr Musk said: 'How can you call yourself the Freedom Caucus if you vote for a DEBT SLAVERY bill with the biggest debt ceiling increase in history?' Independent analysts have warned that the bill's spending cuts were not balanced by tax breaks, meaning it would add more than $2 trillion to the national debt during the next decade.
Bloomberg
01-07-2025
- Automotive
- Bloomberg
Musk Bashes Spending Bill, Trump Threatens Tesla Subsidies
President Donald Trump threatened once again to withdraw government subsidies from Elon Musk's companies after the Tesla Inc. chief executive officer criticized Trump's tax and spending bill. Tyler Kendall reports on Bloomberg Television. (Source: Bloomberg)
