Tesla Shares Tumble Amid Musk–Trump Clash and Delivery Concerns
Tesla shares plunged sharply following a renewed public spat between CEO Elon Musk and President Donald Trump, alongside growing anxiety over Tesla’s second-quarter delivery figures. TSLA opened the day with declines exceeding 6%, reaching a low of around 7% below the previous close—erasing billions from the company’s market value.
Tesla Stock
The sell-off began after Musk criticized Trump’s new “One Big Beautiful Bill,” warning that supporting the legislation could cost lawmakers votes. Trump retaliated via social media, threatening to revoke Tesla’s federal EV subsidies and SpaceX contracts, amplifying investor unease and breaking a brief recovery in Tesla’s stock.
Musk Clash
This escalating confrontation highlights the growing impact of political discourse on corporate valuations. Musk’s remarks targeting EV tax credits and federal policy prompted Trump to threaten removing those benefits—most notably the $7,500 EV subsidy that plays a critical role in Tesla’s pricing strategy. Analysts caution that this feud may overshadow Tesla’s operational performance and market momentum.
Delivery Fear
Tesla is also under pressure ahead of its Q2 delivery report, expected Wednesday. Prognoses are mixed: some forecasts estimate deliveries near 366,000 vehicles, significantly beneath the 406,000 average consensus, while other analysts project closer to 394,000 units—both pointing to potential year-over-year declines. Weakness in European sales and heightened EV competition could intensify investor disappointment.
What This Means:
Combining a politicized dispute with delivery uncertainty places Tesla at a critical crossroads. With the stock already off about a quarter year-to-date in 2025, the upcoming delivery numbers will be pivotal: a miss could deepen losses, while a strong beat might stabilize sentiment.
