Topline Tesla shares fell more than 5% in premarket trading early Tuesday morning after President Donald Trump suggested government subsidies for Elon Musk’s companies—including Tesla—should be scrutinized by the Department of Government Efficiency, as the billionaire CEO attacked Trump’s signature spending bill and threatened to form a new political party. Tesla’s shares fell more than 5% in premarket trading amid a reignited Trump and Musk feud. Getty Images

Key Facts

Tesla’s stock price briefly dropped below $300 after Trump attacked Musk and claimed his companies received more subsidies “than any human being in history.” The electric vehicle maker’s stock eventually settled at around $301.10, down 5.2%, early Tuesday. Tesla’s shares have now fallen more than 9.2% since a public feud between the president and the world’s richest person started last month. Tesla’s shares had sunk below $285 last month, when Musk and Trump first started attacking each other publicly, but they managed to mount a full recovery later in the month amid signs of a detente between the two.

Forbes Estimate

Elon Musk’s net worth is $406.5 billion, making him the world’s richest person by a significant margin on Forbes’ Real Time Billionaires List. This is likely to drop after markets open on Tuesday if the premarket dip holds.

Why Are Musk And Trump Fighting Again?

The slide in Tesla’s shares came after Trump reacted to Musk’s criticism of his signature budget bill and the billionaire’s threat to fund primary challenges against GOP members voting for this bill. Musk attacked the bill in a series of posts on his X platform and said, “If this insane spending bill passes, the America Party will be formed the next day.” Trump retaliated with a Truth Social Post suggesting that, without federal government subsidies, Musk’s companies, including Tesla and SpaceX, may need to “close up shop,” and the billionaire may be forced to “head back home to South Africa.” The president added cost-cutting agency DOGE, which was previously led by Musk, should examine the cost of the subsidies to Musk’s companies and appeared to suggest there was “BIG MONEY TO BE SAVED” by getting rid of them. Musk responded to the threat by tweeting: “I am literally saying CUT IT ALL. Now.”

Crucial Quote

“Elon Musk knew, long before he so strongly Endorsed [sic] me for President, that I was strongly against the EV Mandate. 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,” the president said in his post.

Further Reading

Trump Says Without Subsidies Musk Would Have To Close Firms And ‘Head Back Home’ To South Africa—As Feud Reignites (Forbes)

KEY TAKEAWAYS Shares of Tesla are dropping in premarket trading Tuesday as the feud between CEO Elon Musk and President Donald Trump heats up again.

Trump early Tuesday accused Musk of gaining excessively from electric vehicle subsidies.

Trump’s “One Big Beautiful Bill,” currently being debated by the Senate, includes a provision to eliminate the $7,500 new EV tax credit, a key piece of former President Joe Biden’s efforts to accelerate U.S. EV adoption.

Shares of electric vehicle maker Tesla (TSLA) are dropping more than 4% in premarket trading Tuesday as the feud between CEO Elon Musk and President Donald Trump heats up again.

In a post on his Truth Social platform early Tuesday, Trump accused Musk of gaining from subsidies on electric cars. “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,” Trump wrote.

Trump’s signature “One Big Beautiful Bill,” currently being debated by the Senate, includes a provision to eliminate the $7,500 new EV tax credit, a key piece of former President Joe Biden’s efforts to accelerate U.S. EV adoption.

“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!!!,” Trump added as he lashed out at his former ally. Musk, who also is the CEO of rocket company SpaceX, recently stepped down from running the cost-cutting Department of Government Efficiency (DOGE) in order to focus on his businesses.

Trump’s comments came hours after Musk posted his latest complaints about the tax-and-spending bill on his social media platform X. “Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame!” Musk wrote. “And they will lose their primary next year if it is the last thing I do on this Earth.”

Tesla shares entered Tuesday having lost more than a fifth of their value this year. During the initial escalation of the public spat between Musk and Trump on June 5, shares tumbled 14%, erasing more than $150 billion from Tesla’s market capitalization.

TLDR;

Elon Musk apologized for his recent social media remarks about Donald Trump, attempting to de-escalate a growing political feud.

Tesla shares fell sharply after Musk’s posts, continuing a pattern where his online behavior influences market performance.

The spat raised concerns over government contracts tied to Musk’s companies, particularly SpaceX.

Analysts warn that Tesla’s brand may be suffering from Musk’s increasingly political public image.

Elon Musk issued a public apology on June 11 for a series of social media posts aimed at former President Donald Trump, attempting to calm a controversy that sparked political tension and triggered a sharp decline in Tesla’s stock value.

Musk Backs Off After Trump Clash

Using his platform X, Musk admitted that his earlier comments had gone too far and expressed regret for his remarks, which included inflammatory allegations and calls for Trump’s impeachment.

The conflict emerged after Musk openly criticized the Trump-backed “One Big Beautiful Bill Act,” arguing that the proposed legislation would balloon the national deficit. Musk’s posts, now deleted, included one that linked Trump to controversial figures and another that hinted at Vice President JD Vance taking over the presidency. The backlash was swift, both politically and financially.

I regret some of my posts about President @realDonaldTrump last week. They went too far. — Elon Musk (@elonmusk) June 11, 2025

Tesla Shares Reel from the ‘Musk Effect’

As the online feud played out, Tesla’s share price dropped by 14%, continuing a recurring pattern where Musk’s personal conduct rattles investor confidence. Market analysts have long observed how Musk’s social media behavior moves markets, especially in relation to Tesla. This latest controversy contributed to the company losing its ninth-place spot among the world’s most valuable companies, slipping to tenth as its market value plunged nearly 30% in 2025.

Investors reacted strongly not just to Musk’s statements, but to the risk they introduced. The possibility of the federal government re-evaluating contracts with Musk’s companies, including SpaceX, added to the market volatility. Although such an abrupt reversal in federal support is unlikely, the specter of strained relations with Washington made investors uneasy.

Billions in Federal Contracts Now Under Scrutiny

Behind the headlines lies a deeper issue, the immense financial entanglement between Musk’s companies and the federal government. SpaceX, which provides key launch services for NASA and the Department of Defense, stands to gain over $30 billion in contracts in the coming years. Tesla, meanwhile, benefits from significant federal and state-level subsidies aimed at supporting electric vehicle adoption.

JUST IN: Elon Musk taunts Trump to end his contracts with the federal government, suggests it would end the International Space Station. Trump: “The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and… pic.twitter.com/kfDd9Nl8vI — Collin Rugg (@CollinRugg) June 5, 2025

The feud with Trump brought that relationship into the spotlight, with political figures hinting at potential contract cuts. While such moves remain speculative, the market response suggests growing concern that political missteps could jeopardize lucrative partnerships that underpin the long-term viability of Musk’s ventures.

Musk’s Persona Becomes a Double-Edged Sword

Once hailed as a visionary genius whose boldness inspired Tesla’s meteoric rise, Musk’s image is now increasingly polarizing. His forays into partisan political commentary have alienated parts of the public and shaken confidence in his leadership. In Europe, Tesla sales have already seen a steep decline this year, partly attributed to reputational fallout surrounding Musk’s public behavior.

That said, what once served as Tesla’s most valuable marketing tool, its CEO’s personality, now appears to be a liability. The “Musk effect” has become a cautionary tale for investors and analysts who must weigh not only corporate fundamentals but also the unpredictability of the man behind the brand. While Musk’s apology may cool tensions for now, the episode has reinforced just how tightly Tesla’s fate remains tethered to his actions.

Bullish bets on TSLA soared too, but it was put volumes that hit a record high last week.

Even with the memory of last week’s social media tirade still fresh in traders’ minds, investors have found reasons to pile back into Tesla’s stock as CEO Elon Musk has struck a more conciliatory tone in posts on X. The electric vehicle maker’s share price is up more than 13% from the lows of last week, climbing another 2.5% in premarket trading this morning.

But options activity shows just how negative the sentiment had become during the feud, with put volumes — options bets against Tesla — crossing over 4 million on Thursday, the highest daily volume on record, according to data from FactSet.

That’s more than were traded in early 2023, during the pandemic, or any of the company’s major crises.

It’s worth noting that bullish bets on the company also rose significantly, with call volumes of more than 3.3 million recorded on June 5 — the fourth-highest daily figure on record.

Though the sheer amount of volume in Tesla was remarkable last Thursday, with more than 287 million shares trading hands in the underlying security — and though the bets tended to skew bearish — this wasn’t the most lopsided that the options market has been in the name. Indeed, the put/call ratio only touched 1.2; it’s been much higher before, even in the past 18 months, topping 1.6 in March and April of last year.

NFL legend

draws the attention of

NBA fans

as he names some of the greatest athletes of all time, but surprisingly leaves out one major name from the world of basketball. Former American football quarterback and current sports broadcaster for the NFL,

Tom Brady,

in his recent interview, listed out the names of the athletes who are on his

Mount Rushmore of GOAT

s. While players like Kobe Bryant and Caitlin Clark made it to the list, the absence of

LeBron James

from the list is what drew the attention of the fans.

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Tom Brady announces Michael Jordan on the top of the list, supports other woman NBA players like Caitlin Clark, Angel Reese and A’ja Wilson

Tom Brady and LeBron James developed their friendship over the years as both athletes concentrated on establishing their careers in their respective sports. Even though they cannot be termed as the closest of friends, the players share a warm relationship through their posts on social media. Often, both of them are seen congratulating each other on any major achievements secured by either one of them.

While fans have witnessed the sportsmanship from both sides, Brady’s recent revelation of his Mount Rushmore of GOATs has generated significant reaction from the fans of the NBA veteran.

More so with the inclusion of newcomers like Caitlin Clark and Angel Reese, fans seem to be quite dissatisfied with the NFL veteran list.

In a recent interview, when asked about the list of GOATs, Brady instantly replied, “Michael Jordan, he was my childhood idol. Obviously, I loved Kobe Bryant. Still love Kobe Bryant. Tiger — his competitiveness. What Rory McIlroy has done; I love that.” The veteran went on to name athletes from other sports as well, “Shohei Ohtani, what he has done, has been unbelievable.

Barry Bonds — he went to my high school. I was the biggest fan of his growing up.

Michael Phelps, I love him. Michael Johnson. A’ja Wilson from my Las Vegas Aces. I love her. She’s amazing. Caitlin Clark and Angel Reese, this little thing that they got going. I love that.”

It is quite clear from his answer that Brady has placed Michael Jordan as the GOAT over LeBron James, which has been the centre of the GOAT debate within the NBA for a very long time now.

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LeBron fans have spoken up on the list with one of the users writing, “tom brady putting caitlin and angel on his mount rushmore but not lebron is the most dadcore thing i’ve ever seen”

Another one wrote, “Lol pathetic”

“tom brady just picked jordan over lebron and put caitlin clark on his mount rushmore… y’all still calling him a system qb?”

Also read:

With Brady announcing his list, another sports veteran has seemingly submitted his vote for the NBA GOAT debate between Michael Jordan and LeBron James. Having Caitlin Clark and Angel Reese on the list as well has drawn criticism from the fans across the social media platforms.