Tesla's Wild Ride

Musk vs. Trump Round Two Rocks Markets

The EV giant's stock tumbles 7% as its CEO launches a new political movement while sparring with the president over subsidies and spending

The tech world woke up to fireworks this Tuesday as two of America's most prominent figures locked horns over government spending, subsidies, and the future of American politics. What started as a disagreement over legislation has spiraled into a full-blown feud with major implications for Tesla investors and the broader tech ecosystem.

Key Takeaways

• Tesla stock plunged 7% at market open amid investor concerns over Musk's latest political ventures

• Musk announced formation of the "American Party" aimed at primarying Republicans who support the current spending bill

• Trump suggested investigating deportation of Musk and redirecting DOGE efforts to examine his government subsidies

• The dispute centers on a major spending bill that would extend Trump-era tax cuts while potentially eliminating EV tax credits

• Congressional approval ratings sit at 23%, creating an opening for political disruption

• Tesla faces headwinds from soft global auto sales, reduced cash flow, and dependency on unproven robotaxi technology

• Polls show even Musk supporters prefer him to stay out of direct political leadership roles.