Ahead of a conflict between Donald Trump and Elon Musk, Tesla shares fell by 5% in pre-market trading.
Escalating Conflict
Elon Musk began his attack on the president over Trump's proposed legislation conveniently termed the 'big, beautiful bill.' The dispute heated up in recent hours as Musk vowed to create a new political party to oppose supporters of the bill if it passes.
Trump's Response
Trump reacted by saying:
> "Electric cars are fine, but not everyone should be forced to own one. 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. Perhaps we should have DOGE take a good, hard look at this? BIG MONEY TO BE SAVED!!!"
Musk quickly countered, urging the president to actually go ahead and cut the subsidies.
Musk's Potential New Political Movement
Meanwhile, the odds of Elon Musk creating his own political party called 'America’s Party' skyrocketed on Kalshi, currently standing at 40%.
The conflict between Trump and Musk has led to fluctuations in Tesla shares, further highlighting tensions around government support for electric vehicles.
