Tesla (TSLA) shares are on the rise, increasing by over 20% in May, as investors are primarily focused on the anticipated launch of the robotaxi service scheduled for June 12. Nevertheless, the ongoing conflict between Chief Executive Elon Musk and President Donald Trump is negatively impacting the stock.
During Thursday's trading session, Tesla stock plummeted 14.3% to 284.70, dropping below its 21-day exponential moving average, the 200-day moving average, and the 50-day line, as Trump threatened to revoke Musk's government contracts. On Wednesday, Tesla shares decreased by 3.55% to 332.05 due to disappointing sales in China and worries about Musk's potential fallout with Trump regarding the president's spending and tax legislation.
Musk and Trump's Online Dispute
While speaking from the White House, Trump informed reporters on Thursday that Musk is displeased with the administration's choice to abolish the Biden-era EV credits, as well as the decision to move away from a Musk-supported candidate for NASA. "Elon and I had a wonderful relationship. I am uncertain if that will continue," Trump remarked.
Elon is frustrated because we eliminated the EV mandate, which was a significant financial incentive for electric vehicles, Trump stated on Thursday. And as you know, they are struggling, the electric vehicles, and they expect us to provide billions of dollars in subsidies.
Elon Musk Lashes Out At 'Pork-Filled' Trump Tax Bill
Elon was aware of this from the outset, Trump remarked, alluding to the administration's intention to reduce the tax credits associated with the Inflation Reduction Act. Trump further stated that Musk was cognizant of every detail of this legislation" but "created an issue when he discovered that we would need to eliminate the EV mandate, which amounts to billions and billions of dollars.
It is truly unjust. We aspire to have vehicles of all kinds," Trump expressed. Musk replied on X asserting that this was "incorrect." This legislation was never presented to me even once and was passed in the dead of night so swiftly that nearly no one in Congress could even peruse it," Musk stated on Thursday.
Trump's Major Threat: Musk Responds
Regardless. Maintain the cuts to the EV/solar incentives in the bill, despite the fact that no oil and gas subsidies are affected (very unjust!!), but eliminate the MOUNTAIN of DISGUSTING PORK in the bill," Musk continued.
The Tesla CEO also asserted that without his support and funding, "Trump would have lost the election. Such ungratefulness," Musk commented on X on Thursday. Trump then retaliated with posts on his social media platform, Truth Social.
Elon was 'wearing thin,' I requested him to depart, I rescinded his EV Mandate that compelled everyone to purchase Electric Cars that nobody else desired (which he had known for months I was going to do!), and he simply went CRAZY," Trump wrote on Thursday.
The simplest method to economize in our Budget, billions and billions of dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was astonished that Biden did not take this action!" Trump remarked.
A significant aspect of the postelection bullish thesis is that Musk's close relationship with Trump would advantage Tesla and SpaceX through government contracts and favorable regulations. Musk would not be overshadowed in the online exchange of words on Thursday. Time to unleash the really big bomb," Musk stated on X, before adding that Trump "is in the Epstein files. That is the true reason they have not been disclosed to the public.
Tesla and the Trump Tax Legislation
The ongoing exchange between the CEO of Tesla and the president ensued after Musk expressed his discontent on X on June 3 regarding the bill currently under consideration in the U.S. Senate. This legislation is extensive and seeks to eliminate various tax credits and policies from the Biden administration that were designed to promote the adoption of electric vehicles (EVs).
I apologize, but I can no longer tolerate this," Musk stated on X on Tuesday. This enormous, outrageous, pork-laden Congressional spending bill is a revolting monstrosity. Shame on those who supported it: you are aware of your wrongdoing. You are aware of it. Musk further emphasized that the Trump tax legislation would "significantly escalate the already enormous budget deficit to $2.5 trillion (!!!) and impose unbearable debt on American citizens.
Related Article: Why Tesla Stock Is Down Today?
The tax bill passed by the House under Trump would adversely affect Tesla in multiple ways, as it eliminates significant components of the Inflation Reduction Act (IRA) established by former President Joe Biden. This includes tax credits of up to $7,500 for the purchase of EVs, among various other incentives.
Although the tax and spending legislation would revoke numerous EV incentives, it also introduces a provision allowing the Federal Highway Administration to levy a $250 annual registration fee for EVs and a $100 annual fee for hybrid vehicles.
This measure is intended to ensure that EV users contribute to the maintenance of U.S. roads in place of a gasoline tax. Currently, thirty-seven states impose annual EV fees that range from $50 to $250. Additionally, the House Republican tax bill limits and gradually eliminates the IRA's "advanced manufacturing production credit.
Tesla Stock: The Robotaxi Rollout
Aside from the Musk-Trump controversy, Tesla shareholders are also focusing on the launch of the robotaxi service. A somewhat clearer picture is emerging regarding the anticipated rollout of Tesla's robotaxi service. Bloomberg reported last week that Tesla plans to initiate a limited robotaxi service in Austin on June 12. This information was sourced from a person familiar with the matter.
According to the Bloomberg report, Tesla conducted a test of a Model Y without anyone in the driver's seat for the first time last week. Musk stated on X early on May 29 that Tesla has been testing self-driving Model Y cars (with no one in the driver's seat) on public streets in Austin without any incidents" in recent days. Musk further noted that Model Y vehicles will commence "self-delivery from factory to customer" in June.
Christina Berglund 
Tesla (TSLA) shares are on the rise, increasing by over 20% in May, as investors are primarily focused on the anticipated launch of the robotaxi service scheduled for June 12. Nevertheless, the ongoing conflict between Chief Executive Elon Musk and President Donald Trump is negatively impacting the stock.
During Thursday's trading session, Tesla stock plummeted 14.3% to 284.70, dropping below its 21-day exponential moving average, the 200-day moving average, and the 50-day line, as Trump threatened to revoke Musk's government contracts. On Wednesday, Tesla shares decreased by 3.55% to 332.05 due to disappointing sales in China and worries about Musk's potential fallout with Trump regarding the president's spending and tax legislation.
Musk and Trump's Online Dispute
While speaking from the White House, Trump informed reporters on Thursday that Musk is displeased with the administration's choice to abolish the Biden-era EV credits, as well as the decision to move away from a Musk-supported candidate for NASA. "Elon and I had a wonderful relationship. I am uncertain if that will continue," Trump remarked.
Elon is frustrated because we eliminated the EV mandate, which was a significant financial incentive for electric vehicles, Trump stated on Thursday. And as you know, they are struggling, the electric vehicles, and they expect us to provide billions of dollars in subsidies.
Elon Musk Lashes Out At 'Pork-Filled' Trump Tax Bill
Elon was aware of this from the outset, Trump remarked, alluding to the administration's intention to reduce the tax credits associated with the Inflation Reduction Act. Trump further stated that Musk was cognizant of every detail of this legislation" but "created an issue when he discovered that we would need to eliminate the EV mandate, which amounts to billions and billions of dollars.
It is truly unjust. We aspire to have vehicles of all kinds," Trump expressed. Musk replied on X asserting that this was "incorrect." This legislation was never presented to me even once and was passed in the dead of night so swiftly that nearly no one in Congress could even peruse it," Musk stated on Thursday.
Trump's Major Threat: Musk Responds
Regardless. Maintain the cuts to the EV/solar incentives in the bill, despite the fact that no oil and gas subsidies are affected (very unjust!!), but eliminate the MOUNTAIN of DISGUSTING PORK in the bill," Musk continued.
The Tesla CEO also asserted that without his support and funding, "Trump would have lost the election. Such ungratefulness," Musk commented on X on Thursday. Trump then retaliated with posts on his social media platform, Truth Social.
Elon was 'wearing thin,' I requested him to depart, I rescinded his EV Mandate that compelled everyone to purchase Electric Cars that nobody else desired (which he had known for months I was going to do!), and he simply went CRAZY," Trump wrote on Thursday.
The simplest method to economize in our Budget, billions and billions of dollars, is to terminate Elon's Governmental Subsidies and Contracts. I was astonished that Biden did not take this action!" Trump remarked.
A significant aspect of the postelection bullish thesis is that Musk's close relationship with Trump would advantage Tesla and SpaceX through government contracts and favorable regulations. Musk would not be overshadowed in the online exchange of words on Thursday. Time to unleash the really big bomb," Musk stated on X, before adding that Trump "is in the Epstein files. That is the true reason they have not been disclosed to the public.
Tesla and the Trump Tax Legislation
The ongoing exchange between the CEO of Tesla and the president ensued after Musk expressed his discontent on X on June 3 regarding the bill currently under consideration in the U.S. Senate. This legislation is extensive and seeks to eliminate various tax credits and policies from the Biden administration that were designed to promote the adoption of electric vehicles (EVs).
I apologize, but I can no longer tolerate this," Musk stated on X on Tuesday. This enormous, outrageous, pork-laden Congressional spending bill is a revolting monstrosity. Shame on those who supported it: you are aware of your wrongdoing. You are aware of it. Musk further emphasized that the Trump tax legislation would "significantly escalate the already enormous budget deficit to $2.5 trillion (!!!) and impose unbearable debt on American citizens.
Related Article: Why Tesla Stock Is Down Today?
The tax bill passed by the House under Trump would adversely affect Tesla in multiple ways, as it eliminates significant components of the Inflation Reduction Act (IRA) established by former President Joe Biden. This includes tax credits of up to $7,500 for the purchase of EVs, among various other incentives.
Although the tax and spending legislation would revoke numerous EV incentives, it also introduces a provision allowing the Federal Highway Administration to levy a $250 annual registration fee for EVs and a $100 annual fee for hybrid vehicles.
This measure is intended to ensure that EV users contribute to the maintenance of U.S. roads in place of a gasoline tax. Currently, thirty-seven states impose annual EV fees that range from $50 to $250. Additionally, the House Republican tax bill limits and gradually eliminates the IRA's "advanced manufacturing production credit.
Tesla Stock: The Robotaxi Rollout
Aside from the Musk-Trump controversy, Tesla shareholders are also focusing on the launch of the robotaxi service. A somewhat clearer picture is emerging regarding the anticipated rollout of Tesla's robotaxi service. Bloomberg reported last week that Tesla plans to initiate a limited robotaxi service in Austin on June 12. This information was sourced from a person familiar with the matter.
According to the Bloomberg report, Tesla conducted a test of a Model Y without anyone in the driver's seat for the first time last week. Musk stated on X early on May 29 that Tesla has been testing self-driving Model Y cars (with no one in the driver's seat) on public streets in Austin without any incidents" in recent days. Musk further noted that Model Y vehicles will commence "self-delivery from factory to customer" in June.