From Nasdaq: 2025-06-11 00:56:00

Elon Musk’s public fallout with President Trump may impact Tesla, as he criticized Trump’s tax plan. Musk’s $300 million support for Trump’s 2024 run and recent resignation as advisor led to tensions. Trump threatened consequences for Musk’s companies. Tesla faces challenges, with stock declining by 14% last week. Musk’s feud with Trump could jeopardize Tesla’s future.

Tesla’s dependence on public support is significant, with $38 billion in public money secured by Musk’s companies. Early funding came from a $465 million DOE loan. Regulatory credits have sustained Tesla through losses, but the Musk-Trump feud threatens this support. Tesla’s financial stability is at risk due to potential changes in public policies.

The rift between Musk and Trump could slow down Tesla’s Full Self-Driving progress. Trump’s support for deregulating autonomous vehicles aided Tesla’s efforts. With tighter regulations and reduced political cover, Tesla may face challenges in its autonomous vehicle ambitions. Consumer pushback may also arise due to Musk’s political shifts and alignment with Trump.

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