Tesla was "injured" again due to the escalating conflict between Trump and Musk.
On July 1, local time, when the U.S. stock market opened, Tesla fell more than 7%. According to a report by the Global Times on the 1st, the "war of words" between U.S. President Trump and American entrepreneur Musk over the tax reform bill continued to escalate.
The Global Times quoted Reuters as saying that Trump once again said on the 1st local time that Musk was unhappy because he lost policy support for electric vehicles in the "big and beautiful" tax and spending bill. Trump also warned Musk that "there may be more to lose than that."
According to Xinhua News Agency, Trump responded on social media on July 1 that Musk "may have received more subsidies (from the US government) than anyone in history" and that perhaps the US government's efficiency department should investigate Musk's company's receipt of government subsidies. Trump wrote that Musk knew clearly before strongly supporting his presidential campaign that he strongly opposed mandatory policies on electric vehicles. "Electric cars are good, but everyone should not be forced to own one."
Trump said: "Elon (Musk) has probably received more (U.S. government) subsidies than anyone in history so far, and without these subsidies, he would probably have to close his business and go back home to South Africa."
According to Xinhua News Agency on June 30, Trump talked about his relationship with Musk on June 29, saying that Musk was "a little depressed" and his recent behavior was "inappropriate."
The day before, Musk once again fiercely criticized Trump's "big and beautiful" tax and spending bill.
On June 28, the U.S. Senate reviewed the draft bill. Musk said on social media that the bill "will destroy millions of jobs in the United States and cause great damage to our country." He criticized the bill as "extremely crazy and destructive" and "providing handouts to sunset industries while severely damaging future industries."
Musk has publicly criticized the "big, beautiful" bill many times.
Xinhua News Agency reported that the "big and beautiful" bill involves "sensitive points" in American politics, including substantial cuts in tax rates, new energy subsidies and social security spending, as well as increased military and border security spending. It is estimated that the bill will increase the US federal government's debt by about $3.8 trillion over the next 10 years.
Some American media believe that Musk’s criticism of the bill is also one of the important reasons for the deterioration of his relationship with Trump, and some provisions of the bill concern Musk’s personal interests.
On May 22, the U.S. House of Representatives narrowly passed a massive tax and spending bill proposed by the Trump administration, which the Trump administration described as "big and beautiful."
The content of the bill can be generally summarized into two aspects: first, cutting taxes, Medicaid, food aid, education and clean energy spending, and using the funds saved in this way for military and border security; second, raising the debt ceiling and allowing the federal government to continue borrowing to finance its debt.
Among them, an electric vehicle tax credit policy aimed at encouraging purchases of Tesla was not included in the bill.
The beginning of the split between Musk and Trump originated from this tax reform bill.
On June 5, local time, the conflict between the two sides became public, and the verbal battle on social media escalated. As a result, Tesla's stock price plummeted by more than 14%, and its total market value fell below one trillion US dollars, evaporating more than US$150 billion (about RMB 1.08 trillion) in market value overnight.
