Tesla stock dropped up to 8% after President Trump criticized Elon Musk for receiving substantial government subsidies, suggesting that without them, Musk's businesses might struggle.
Trump's comments reignited their feud, fueled by Musk's criticism of Trump's tax bill. The exchange highlighted that Musk's enterprises received around $38 billion in federal assistance over the past two decades.
The spat escalated after Musk slammed Trump's tax bill as 'utterly insane and destructive,' potentially endangering jobs. This confrontation caused Tesla stock to fluctuate amid market uncertainties.
Despite the back-and-forth between Musk and Trump, Tesla stock experienced volatility throughout 2025, initially declining due to factors like reduced EV sales, Trump's tariffs, but rebounding on positive trade news and Musk's planned DOGE dissociation.