Following the U.S. Senate’s approval of President Trump’s bill that includes significant cuts to social spending, Tesla shares fell by more than 5%.
The bill, which extends tax cuts and proposes substantial reductions in social spending, was narrowly passed by the Republican-controlled Senate. As a result, Tesla shares experienced a 5.3% decline.
Tesla’s CEO, Elon Musk, criticized Trump’s tax and spending plan as being “wasteful” and “misguided.”
LOSS OF INCENTIVES, FRUSTRATION
In a recent statement at the White House, Trump mentioned that Musk is “angry” because he lost electric vehicle incentives. Trump added, “He gets very upset about some things, but he could lose more.” Over the years, Tesla, owned by Musk, has earned billions through government incentives and tax breaks.
Trump argued that ending these supports would result in significant savings for the country.
On the social media platform Truth Social, Trump remarked, “No more rocket launches, satellites, or electric vehicle production; our country would gain wealth.”
DOGE REFERENCE
Additionally, Trump made a reference to the Government Efficiency Department (DOGE), established under Musk’s leadership to reduce public spending, stating, “DOGE might be a monster that needs to turn back and eat Elon,” heightening the tension further.
WILL MUSK BE DEPORTED?
When asked whether Musk, as a U.S. citizen, might be deported, Trump responded, “I don’t know. We would have to look into it.” The verbal battle between Trump and Musk reignited following the passage of the new tax law in the Senate. This law, by removing tax incentives for electric vehicle purchases, directly impacts companies like Tesla.
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