Tesla (TSLA) shares dropped again on Thursday as tensions between CEO Elon Musk and President Trump intensified in a very public clash.
“I’m very disappointed, because Elon knew the inner workings of this bill better than almost anybody sitting here, better than you people,” Trump told reporters in the Oval Office. “All of a sudden he had a problem, and he only developed the problem when he found out that we’re going to have to have to cut the EV mandate.”
“Elon and I had a great relationship. I don’t know if we will anymore. I was surprised,” Trump added.
Musk appeared to respond on X, the platform he owns, posting simply: “Whatever.”
Tesla stock hit session lows on Thursday afternoon, falling as much as 8% around 12:50 p.m. ET, as Musk reacted in real time to Trump’s remarks.
The president’s comments marked an unusually direct public rebuke of Musk, who had been a prominent Trump supporter and Republican donor during the 2024 campaign. Musk was later tapped to lead the Trump-created Department of Government Efficiency (DOGE), a position aimed at slashing federal spending.
Musk’s opposition to the bill began earlier this week when he called it a “disgusting abomination” on Tuesday. He escalated the criticism on Wednesday, urging users on X: “Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.”
According to the Wall Street Journal, tensions between the two men worsened after the White House withdrew the nomination of Jared Isaacman, Musk’s close ally, for NASA administrator—a post Musk had lobbied for behind the scenes.
Bloomberg reported that Musk may also be upset over the bill’s plan to phase out the federal EV tax credit, which he had fought to preserve as a critical driver of Tesla’s business.
The “Big Beautiful Bill” faces an uncertain fate in the Senate, with a new Congressional Budget Office analysis adding fuel to Musk’s criticism. The nonpartisan office estimates the bill would increase deficits by $2.4 trillion over the next decade.
DOGE, the agency Musk once led, has come under fire for failing to deliver the promised budget cuts. Those it did make have proven widely unpopular.
Musk’s ties to the Trump administration had previously been seen as beneficial for his companies—particularly SpaceX’s work with NASA and Tesla’s regulatory needs around autonomous driving and robotaxi deployment.
However, growing demand weakness in Europe and recent protests at Tesla showrooms in the U.S. have followed Musk’s increasingly political posture. His outspoken support for Trump, leadership of DOGE, and perceived rightward shift have alienated some Tesla customers.
Tesla is set to hold its highly anticipated robotaxi test on June 12 in Austin. Much of the company’s valuation hinges on unlocking full autonomous driving capabilities for both commercial fleets and individual owners.
Meanwhile, Alphabet’s Waymo continues to dominate the sector, now logging roughly 250,000 robotaxi trips per week.
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