Trump's Subsidy Cut Threat Causes a Decline in Tesla Stock Following Disagreement with Elon Musk

Tesla's stock value experienced a 5% decrease amid a contentious exchange between President Donald Trump and Tesla CEO Elon Musk. This interaction was provoked by Musk's vocal opposition to Trump's proposed legislation, the "big, beautiful bill." Musk stated he might even establish a new political party to challenge the bill if it is passed. In retaliation, Trump suggested reducing subsidies for electric cars, implying that without these, Musk might have to halt his ventures.

In response, Musk challenged Trump to execute the subsidy cuts. Speculation arose concerning further possible reprisals from Trump, including the potential for Musk's deportation. Concurrently, the probability of Musk initiating his own political party, tentatively named "America's Party," surged to 40% on Kalshi.