Tesla (NASDAQ: TSLA) shares dropped 2.6% in pre-market today and as much as 5% in the opening hour as the Tesla chief executive officer (CEO) Elon Musk and President Trump continue to bickle.
At one point, TSLA stock was trading as low as $313.50 before retracing to its press time price of $314.26, contributing to a -$37.20 (-10.47%) in the past 5 days.
Tesla shares remain impacted as Musk continues his stance against Trump’s so-called “Big, Beautiful Bill,” which would eliminate the $7,500 federal electric vehicle (EV) tax credit introduced under former President Biden’s Inflation Reduction Act, although Musk supported ending the tax credit back in December.
Understandably, Trump’s proposal poses a direct threat not only to Tesla but to other EV manufacturers as well, as the tax incentive has been a key factor in supporting EV sales in the country.
Tesla sales
Musk’s political outbursts could not have come at a worse time.
The company is already struggling with foreign sales drops, particularly in China and Europe, and any added pressures could end up being the straw that breaks the camel’s back.
Recall that the company has been facing a lot of negative criticism since 2024 given Musk’s political activity, particularly his association with the Trump administration.
Despite the downturn in Europe and China, Tesla posted modest sales gains in Australia and Norway and expects a rebound in U.K. sales in June. However, only time will tell whether Musk’s projections will become reality.
The reality is that Tesla shares are down 17.21% year-to-date (YTD), so no one can be blamed for their pessimism. That’s especially true in light of the recent downturn in global EV demand overall.
Featured image via Shutterstock
