US President Donald Trump has escalated his feud with Elon Musk, threatening to review subsidies for Tesla and SpaceX. The comments came amid reports that Tesla’s shares have dropped 5.5% following the subsidy threat.
Musk, who is also CEO of SpaceX, criticized a new tax-cut bill, calling it “terrible” and suggesting the need for a new political party. He argued that the US needs to focus on investing in sustainable energy and space exploration rather than tax cuts.
Tesla has been struggling to meet sales targets worldwide, with Musk betting on robotaxis as a key growth area. The company is expected to release its latest sales figures on Wednesday.
The feud between Trump and Musk has raised concerns among Tesla investors, who are watching the situation closely. With the subsidy review, Tesla’s shares have taken a hit, adding to concerns about the company’s financial health.
As the US automotive industry continues to evolve, one thing is clear: the battle for influence between tech giants and politicians will shape the future of sustainable energy and innovation.
Source: https://www.reuters.com/business/autos-transportation/elon-musk-renews-criticism-trump-spending-bill-calls-new-political-party-2025-06-30