Trump and Musk have clashed again, and the one who is still hurt the most is Tesla.
On July 2, (Gong Hongyu) less than a month has passed, and the矛盾 between US President Trump and Tesla CEO Musk has intensified again. Musk has been writing and criticizing the 'big and beautiful' bill on social media platforms, promising to establish a new political party, while Trump has threatened to use the power of the US federal government to punish his former advisor.
The second round of public 'bickering' between the two has caused the stock price of Tesla to fall continuously for several days, once again陷入 crisis.
The trend of Tesla's stock price. Data source: WindThe cumulative decline of Tesla's stock price exceeds 10%
In recent days, the stock price of Tesla has been falling continuously, with the cumulative decline exceeding 10% in a week.
Musk's dissatisfaction with Trump's 'big and beautiful' bill became the trigger for this dispute. Musk has repeatedly criticized the bill on social media in recent days, calling it 'absurd', 'disgusting', 'crazy and destructive', and arguing that the bill 'provides charity to sunset industries while seriously harming future industries'.
He also warned that the bill would raise the government's debt ceiling, leading the United States onto a fast track to debt slavery.
特朗普随即反击，指责马斯克“因失去电动车政策支持而恼羞成怒”，并暗示“这仅是开始，他可能失去更多”。
Trump mentioned that the subsidies Musk received 'may be more than anyone in history,' and vowed 'Without subsidies, Musk may have to close down and return to his hometown in South Africa. If we no longer launch rockets, produce satellites, or manufacture electric vehicles, our country will save a lot of money.'
Reuters reported that the Trump administration controls multiple subsidy programs, including the 7,500 US dollar consumer exemption, while the 'Big and Beautiful' bill plans to cut some of these subsidies. This will threaten Tesla's huge tax deductions and policy benefits obtained through clean transportation and renewable energy businesses.
Morgan Stanley analysts had predicted at the beginning of the year that the cancellation of the electric vehicle exemption policy could reduce Tesla's annual operating profit by 1.2 billion US dollars (about 17% of the expected profit in 2024).
Under the impact of the prospect of subsidy reduction and the two sides' public opinion war, Tesla's stock price has once again fallen. Gary Black, the manager of Future Fund LLC, which has long held Tesla stocks, is recently reducing his Tesla stocks. He told Reuters that the cancellation of subsidies will deal a heavy blow to Tesla.
Screenshot from Reuters report.The crisis is exacerbated by the split
The core of Tesla's current valuation lies in the progress of autonomous driving. Although this field has not been directly affected, there are potential risks,
In addition, SpaceX, under Musk's leadership, holds about 22 billion US dollars in federal contracts. Tesla has also made substantial profits by selling regulatory credits to underperforming car manufacturers, with cumulative earnings of nearly 11 billion US dollars. Without this income, Tesla's first quarter financial report released in April should have already shown a loss.
As early as the first week of June, when the two sides were in fierce dispute over the 'Big and Beautiful' bill, Trump had threatened to cancel Musk's government contract. Non-partisan analysts estimate that the bill will increase the US debt by about 3 trillion US dollars.
At the same time, Tesla itself is facing the困境 of weak sales growth. Analysts predict that the upcoming Tesla second quarter delivery data may once again be weak. The latest data as of July 1st shows that its sales performance in major European markets is divided. Analysis suggests that Musk's recent tough stance has also led to the loss of potential customers in some global markets.
Despite the ongoing conflict between Musk and Trump, the impact on Tesla and Musk's business empire seems inevitable, and the market's concerns about its prospects are continuing to intensify.
