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Elon Musk Monitor
Home » Trump, Musk fuel heats up and Tesla investors get burned
Public Perception & Cultural Impact

Trump, Musk fuel heats up and Tesla investors get burned

elonmuskBy elonmuskJuly 7, 2025No Comments2 Mins Read
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Shares of Tesla tumbled 8% at the opening bell Monday as the feud between CEO Elon Musk and Trump reignited over the weekend.

Musk, once a top donor and ally of Trump, announced that he was forming a third political party in protest over the Republican spending bill that passed late last week. Musk has been highly critical of the bill, which he said would kill jobs and bog down burgeoning industries.

In a social media post on Sunday, Trump said that the billionaire owner of SpaceX, Tesla and X had gone “off the rails” in recent weeks.

Investors fear that Musk’s companies, which receive significant subsidies from the federal government, could suffer further if his feud with Trump continues to fester.

“With the autonomous future ahead and the AI Revolution in full force Musk/Tesla do not need to keep poking the bear as Trump can create more hurdles for Musk/Tesla/SpaceX over the coming years if this political battle gets nastier heading into mid-terms in 2026,” Wedbush Securities analyst Dan Ives wrote in a note to clients late Sunday.

Tesla shares have been extremely volatile since Musk went all-in for Trump in the run-up to last year’s election with the company facing a growing backlash as a result of Musk’s embrace of right-wing politics and his role in the Trump administration.

Shares have plunged in Europe and the U.S.. Industry analysts believe a large part of that slump is being driven by Musk’s affiliation with Trump and far-right parties like Germany AfD. But Tesla is facing rising competition globally, particularly in China.

Since hitting an all-time high of $479.76 on Dec. 17, Tesla shares have lost about 40% of their value. Tesla shares are down about $26 each since Thursday’s close, to $289.75.



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