Tesla Stock Drops 7.3% Amid Trump’s Remarks About Musk

Tesla’s stock experienced a 7.3% decline at the open of the U.S. market on July 1, 2025, following critical remarks from President Donald Trump about CEO Elon Musk.

Market reactions to Trump’s statements spotlight concerns over potential changes in Tesla’s government support and financial stability.

Tesla’s 7.3% Stock Drop Amid Political Tensions

Tesla’s stock saw a sharp decline of over 7% on the morning of July 1, 2025. This marks the largest drop since June 5, amid public tensions between President Donald Trump and CEO Elon Musk. The conflict centers around EV subsidies that Musk’s ventures benefit from.

Immediate implications include investor apprehension regarding the stability of government contracts and tax credits tied to Tesla. Without these subsidies, analysts suggest Tesla could face operational challenges in maintaining its production and growth forecasts.

“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.” — Donald Trump, President, United States

Potential Impact on Tesla’s Future and Market Predictions

Did you know?
Stocks in the electric vehicle sector have historically experienced volatility when government support becomes a political focal point, as seen in previous disputes involving Tesla.

Bitcoin (BTC), as of the last update, is priced at $106,658.90 with a market cap of $2.12 trillion, representing 64.82% market dominance per CoinMarketCap. BTC saw a slight price dip of 0.96% over the past 24 hours, and a modest 1.42% increase over 7 days.

Insights from the Coincu research team suggest that the political landscape surrounding EV subsidies remains volatile. Financial experts highlight that any long-term reductions in subsidies could majorly impact Tesla’s market position, influencing investor sentiment across the clean energy sector.