Tesla Stock Tanks as Trump Vows to Slash Subsidies After Fiery Elon Musk Showdown

Wall Street's favorite punching bag is back in the crosshairs. Tesla shares nosedived today after former President Donald Trump pledged to gut EV subsidies—a direct shot across Elon Musk's bow following their very public feud.

The billionaire bromance is officially over. What started as a mutual admiration society between the tech mogul and the 45th president has devolved into a full-blown political street fight. And Tesla investors are paying the price.

Trump's subsidy threat hits where it hurts. The EV maker's stock has been living on government life support for years—because nothing says 'free market' like billions in taxpayer handouts to the world's richest man.

This political theater couldn't come at a worse time for Tesla. With demand wobbling and competitors eating its lunch, the last thing Musk needed was Washington turning off the money faucet. But in typical Elon fashion, he picked a fight he might not win.

Trump didn’t take it lightly and immediately Leveraged his political powers in response, saying:

Electric cars are fine, but not everyone should be forced to own one. 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. 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!!!

Musk was quick to counter, urging the president to actually go ahead and cut the subsidies. Meanwhile, Trump also said that he could “los a lot more than” the EV mandate, with some speculators immediately beginning to discuss the possibility of a deportation.

Meanwhile, the odds of Elon Musk creating his own political party called “America’s Party,” skyrocketed on Kalshi, currently standing at 40%.