Tesla’s share price in the U.S. stock market is set for a sharp decline on Tuesday, falling 6.2% in premarket trading. The drop follows fresh tensions between Tesla CEO Elon Musk and President Donald Trump over the tax bill. Trump called for the government efficiency department to review federal subsidies received by Musk’s companies, potentially jeopardizing billions in support.
Adding to Tesla’s troubles, the company reported a sixth consecutive monthly decline in sales in Sweden and Denmark in June. Musk has reportedly taken direct control of sales operations in Europe and the U.S. following the exit of senior executive Omead Afshar, according to Bloomberg News.
Also read: “Tesla Tumbles: Is Trump-Musk Feud Fueling the Crash?”
The latest clash between Musk and Trump stems from Musk’s vocal criticism of a sweeping tax-cut and spending bill. Despite his status as a major Republican donor, Musk vowed to target lawmakers who supported the legislation, accusing them of abandoning promises to curb government spending.
Tesla’s business faces added uncertainty, as its future plans hinge on regulatory approvals. The U.S. Transportation Department’s decisions will be crucial to Musk’s goal of mass-producing robotaxis without pedals or steering wheels. Meanwhile, Musk’s SpaceX holds about $22 billion in federal contracts, which could come under scrutiny.
FAQs
Q1. Who is the CEO of Tesla?
A1. Elon Musk is the CEO of Tesla.
Q2. How are Tesla shares performing?
A2. Tesla shares fell over 6% before the market opened on Tuesday.