Tesla Stock Falls 6% as Musk-Trump Feud Escalates Over Republican Spending Bill

cbsnews.com/news/trump-tesla-stock-musk-spending-bill-feud/

Revised Article

Tesla shares dropped 6% on Tuesday as tensions escalated between CEO Elon Musk and President Trump over a massive Republican spending bill awaiting a Senate vote. The stock fell $18.98 to $298.50 during morning trading as investors reacted to the renewed public dispute between the two prominent figures.

The conflict reignited when Musk criticized Trump's comprehensive spending legislation on social media, calling it destructive to American jobs. Musk, who previously led the Department of Government Efficiency before stepping down in May 2025, threatened to form a new political party and support primary challenges against Republicans who vote for the bill. The Department of Government Efficiency is a temporary commission established by Trump to reduce government spending and eliminate inefficiencies.

Trump responded by highlighting the substantial federal subsidies flowing to Musk's companies and suggested that DOGE investigate government spending related to Musk's business empire. Tesla and Musk's other ventures receive various forms of federal support, including electric vehicle tax credits, charging infrastructure grants, and regulatory credits that Tesla sells to other automakers for revenue. The Congressional Budget Office projects the disputed spending bill would increase the national debt by approximately $2.8 trillion over ten years.

This public feud represents an escalation of ongoing tensions between the two billionaires that began over broader policy disagreements regarding Trump's domestic agenda. Technology analyst Dan Ives from Wedbush expects the conflict to subside but notes that investors are concerned about potential increased scrutiny of government spending flowing to Musk's companies. Tesla's stock has faced volatility throughout 2025, with the company preparing to release quarterly earnings results.

Missing Context & Misinformation 6

  • The Department of Government Efficiency (DOGE) is a temporary commission, not a permanent federal department, established by Trump in early 2025 to cut government spending and eliminate perceived inefficiencies.
  • Musk stepped down from his special government employee position at DOGE in May 2025, but the commission continues operating under Trump's directive with other leadership.
  • Tesla receives various federal subsidies including electric vehicle tax credits for consumers, charging infrastructure grants, and regulatory credits that the company sells to other automakers for revenue.
  • The Republican spending bill being debated is comprehensive legislation that the Congressional Budget Office projects would increase the national debt by approximately $2.8 trillion over ten years.
  • This conflict represents an escalation of ongoing tensions between Trump and Musk that began over policy disagreements regarding Trump's domestic agenda, with previous disputes involving Musk's criticism of Trump's policies.
  • Tesla's stock performance has been volatile throughout 2025, with the company facing broader challenges in the electric vehicle market beyond just political conflicts.

Disinformation & Lies 2

  • The article states Tesla stock has fallen 21% 'since the start of the year' but doesn't specify which year, creating potential confusion about the timeframe being referenced.

Bias 3

The article shows mild bias in its framing and language choices. The phrase 'clapped back' is informal and suggests Trump's response was reactive rather than measured policy consideration. The characterization of Musk 'reigniting a squabble' frames the disagreement as petty rather than substantive policy debate. However, this bias is relatively fair given the public nature of their social media exchanges and serves the useful purpose of conveying the personal and dramatic nature of the conflict to readers. The bias helps readers understand this isn't typical policy disagreement but a public feud between powerful figures. The financial focus and inclusion of analyst perspectives provides balance.