Tesla’s stock price dropped 4.9 percent by midday Tuesday following a suggestion by President Donald Trump that government subsidies for Elon Musk’s companies, such as Tesla, should be reviewed by the so-called Department of Government Efficiency, which Musk used to lead.
The plunge arrived in the middle of a renewed feud between the president and the world’s richest man after Musk attacked Trump’s congressional spending package and threatened to form a new political party.
Tesla dropped below $300 for a short period of time after Trump said Musk’s companies got more subsidies “than any human being in history.” The stock settled at about $303.46 by Tuesday afternoon. Tesla’s stock has dropped more than 9.2 percent since the public feud began last month, and a little more than 21 percent since the start of the year.
Meanwhile, Tesla’s shares fell below $285 last month when Musk and Trump began their public attacks against each other. However, the price recovered later in the month, as signs emerged that relations between Musk and the president were improving.
Musk’s current net worth is currently $409.8 billion, making him the world’s richest person by a wide margin. It was not immediately clear if his net worth dropped along with the stock price.
Musk, who has repeatedly attacked the centerpiece of Trump’s legislative agenda, has threatened to fund primary challengers against any Republicans who vote in support of the bill.
“If this insane spending bill passes, the America Party will be formed the next day,” he wrote on X, the social media platform he owns.
Trump took to his own social media platform, Truth Social, to suggest that without subsidies from the federal government, Musk’s companies, such as SpaceX and Tesla, would have to “close up shop” and Musk would possibly have to “head back home to South Africa.”
The president added that DOGE should review the costs of the subsidies, suggesting there’s “BIG MONEY TO BE SAVED” by removing them.
“I am literally saying CUT IT ALL. Now,” Musk responded.
“Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,” said Trump. “It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.”
Asked on Tuesday whether he would considering deporting the South African billionaire, Trump appeared to leave the door open to the idea.
“I don’t know. We’ll have to take a look,” he said outside the White House.
“We might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon.”
