Tesla stock sinks 6% as Trump says he'll 'take a look' at deporting Elon Musk
After the Tesla CEO renewed his opposition to Trump's big bill, the bromance between the two appears over — and Tesla investors are paying the price

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Tesla investors woke up Tuesday to find themselves caught even further in the middle of a political feud turned financial hazard. Shares of the electric-vehicle maker slid more than 6% after President Donald Trump and CEO Elon Musk reignited their feud — this time with threats aimed not just at Tesla’s federal funding but at Musk’s immigration status.
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During an early-morning gaggle, Trump was asked by reporters whether he might deport Musk, who was born in South Africa and is a naturalized U.S. citizen. “We’ll have to take a look,” Trump said, before asking the crowd if they knew what the Department of Government Efficiency (DOGE) was, referring to the controversial cost- and job-cutting agency Musk led. “We might have to put DOGE on Elon,” the president said. “DOGE is the monster that might have to go back and eat Elon.”
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That quote came hours after a Truth Social post where Trump said Musk might be the biggest subsidy recipient in history and called for the Department of Government Efficiency (DOGE) to “take a good, hard look” at how much taxpayer money was flowing to Musk’s companies.
Trump wrote that without government support, “Elon would probably have to close up shop and head back home to South Africa.” The president added that there is “BIG MONEY TO BE SAVED!!!” if DOGE dug into Musk’s businesses. “No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE.”
Musk responded on Twitter, “So tempting to escalate this. So, so tempting. But I will refrain for now.”
The market didn’t laugh. The company’s shares, already down almost 20% on the year, sank in premarket trading and stayed lower through the morning, shedding billions in value and reminding investors that being on Trump’s bad side isn’t just a PR problem, it’s a balance-sheet issue.
The latest blowup came after Musk torched Trump’s “One Big Beautiful Bill” on X, accusing Republican lawmakers of betraying their promises on fiscal restraint. “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,” he wrote. “And they will lose their primary next year if it is the last thing I do on this Earth.” He also threatened to create a political party if the bill passes and vowed to back primary challengers to pro-bill Republicans, escalating a battle that Trump himself has been trying to control.
For Tesla, the timing couldn’t be worse.
The company will report second-quarter delivery numbers on Wednesday that are already expected to disappoint. RBC forecasts just 366,000 vehicles sold, far below the 406,000 Wall Street was hoping for earlier this year. Tesla’s robotaxis have launched — but with issues. Europe and China remain soft. Meanwhile, Tesla has quietly raised the price of its Model 3 Long Range in China by about $1,395, despite continued pricing pressure in the region. And with domestic demand shaky, even a modest delivery miss could compound investor anxiety, particularly now that Musk has retaken control of Tesla’s sales operations in the U.S. and Europe and reinserted himself in the political arena.
And yet, none of these problems might be able to rattle Tesla’s valuation quite like a few words from the president.
Wedbush analyst Dan Ives, a longtime Tesla bull, wrote, “This BFF situation has now turned into a soap opera that remains an overhang on Tesla’s stock with investors fearing that the Trump Administration will be more hawkish and show scrutiny around Musk related U.S. government spending related to Tesla/SpaceX and most importantly the autonomous future with the regulatory environment key to the future of Robotaxis and Cybercabs.”
Investors, Ives added, are increasingly frustrated that Musk has reentered the political fray instead of focusing on “driving Tesla,” turning Tesla’s share price into collateral damage. Still, Tesla’s stock has remained buoyant, propped up by a near-religious belief in its autonomous future. Ives maintained an “Outperform” rating and $500 price target on Tesla.
“At the end of the day Musk needs Trump and Trump needs Musk given the AI Arms Race going on between the U.S. and China,” Ives wrote. “Being on Trump’s bad side will not turn out well..and Musk knows this and Tesla investors want this back and forth to end."
This isn’t the first time their drama has moved markets. On June 5, a separate round of public sniping between Trump and Musk sent Tesla shares down 14% in a single day. The duo later appeared to broker a truce, but that peace was short-lived. Musk’s renewed attacks on Trump’s spending plan seem to have reignited the feud — and once again put Tesla in the crosshairs.
Musk’s companies are deeply intertwined with the federal government. Tesla has benefited from billions in EV tax credits, energy grants, and regulatory incentives, and SpaceX is a top NASA contractor. Tesla’s survival through its early years was helped along by the very federal dollars Trump is now threatening to claw back. Ark Invest CEO Cathie Wood said earlier this month that investors are waking up to the extent of just how deeply Musk’s empire depends on the U.S. government.
The bromance between Musk and Trump may be over, but Tesla investors are still stuck in the middle of the breakup.