Tesla stock slid more than 6% Tuesday after President Donald Trump reignited his public feud with Elon Musk, suggesting he might review the Tesla CEO’s immigration status and federal subsidies tied to his companies.
The clash, sparked by Musk’s harsh criticism of Trump’s proposed spending bill, triggered market jitters as investors reacted to growing tensions between the two high-profile figures. Trump, speaking to reporters early Tuesday, was asked whether he might consider deporting Musk. “We’ll have to take a look,” he said, adding that the Department of Government Efficiency (DOGE) might be instructed to investigate Musk’s businesses. “DOGE is the monster that might have to go back and eat Elon,” Trump quipped.
The president’s remarks followed a post on Truth Social where he accused Musk of being “the biggest subsidy recipient in U.S. history” and called for a full audit of taxpayer funds going to SpaceX and Tesla. “No more rocket launches, satellites, or electric cars — our country would save a FORTUNE,” Trump wrote, even suggesting Musk could “head back home to South Africa.”
Musk, who was born in South Africa and is a naturalized U.S. citizen, replied on X, “So tempting to escalate this. So, so tempting. But I will refrain for now.”
The feud intensified after Musk blasted Trump’s “One Big Beautiful Bill,” calling it the largest debt expansion in U.S. history and vowing to fund primary challenges against Republicans who supported it. He also hinted at launching a new political party if the bill passes.
The market reaction was swift and severe, with Tesla’s valuation taking a multi-billion-dollar hit. Already down nearly 20% this year, the stock’s latest drop underscores how political fallout can quickly translate into financial risk — especially when the target is the world’s most outspoken CEO.
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