By Gustaf Kilander
Tesla鈥檚 stock price dropped more than five percent in premarket trading early on Tuesday following a suggestion by President Donald Trump that government subsidies for Elon Musk鈥檚 companies, such as Tesla, should be reviewed by the so-called Department of Government Efficiency, which Musk used to lead.
The plunge arrived in the middle of a renewed feud between the president and the world鈥檚 richest man after Musk attacked Trump鈥檚 congressional spending package and threatened to form a new political party.
Tesla dropped below $300 for a short period of time after Trump said Musk鈥檚 companies got more subsidies 鈥渢han any human being in history.鈥
The stock settled at about $301.10, a drop of 5.2 percent, early on Tuesday. Tesla鈥檚 stock has dropped more than 9.2 percent since the public feud began last month.
Tesla鈥檚 shares fell below $285 last month when Musk and Trump began their public attacks against each other. However, the price recovered later in the month, as signs emerged that relations between Musk and the president were improving.
Musk鈥檚 current net worth is currently $406.5 billion, making him the world鈥檚 richest person by a wide margin.
But his net worth is expected to drop as markets opened Tuesday.
Musk, who has repeatedly attacked the centerpiece of Trump鈥檚 legislative agenda, has threatened to fund primary challengers against any Republicans who vote in support of the bill.
鈥淚f this insane spending bill passes, the America Party will be formed the next day,鈥 he wrote on X, the social media platform he owns.
Trump took to his own social media platform, Truth Social, to suggest that without subsidies from the federal government, Musk鈥檚 companies, such as SpaceX and Tesla, would have to 鈥渃lose up shop鈥 and Musk would possibly have to 鈥渉ead back home to South Africa.鈥
The president added that DOGE should review the costs of the subsidies, suggesting there鈥檚 鈥淏IG MONEY TO BE SAVED鈥 by removing them.
鈥淚 am literally saying CUT IT ALL. Now,鈥 Musk responded.
鈥淓lon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate,鈥 said Trump. 鈥淚t is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.鈥
Asked on Tuesday whether he would considering deporting the South African billionaire, Trump appeared to leave the door open to the idea.
鈥淚 don鈥檛 know. We鈥檒l have to take a look,鈥 he said outside the White House.
鈥淲e might have to put DOGE on Elon. You know what DOGE is? DOGE is the monster that might have to go back and eat Elon.鈥