Trump threatens to deport Elon Musk and reignites crisis within the government
Tesla fell 7% today due to the new political clash and closed down 5.34%
- Now the fight is under threat of deportation
The tension between Trump and Musk is not new. Musk, who supported Trump in the 2024 campaign and even led the DOGE (Department of Government Efficiency), is now criticizing the government's fiscal direction.
The crisis escalated with a post by Trump on Truth Social:
“Elon's companies, like Tesla and SpaceX, receive billions in federal subsidies – without that, he would have to go back to South Africa. No more rockets or electric cars. Maybe DOGE should look into that!”
- Trump does not ignore deportation in interview with journalists
Asked if he would deport Musk, Trump replied: “I don’t know… we’ll have to take a look.”
Musk is a South African who has been a naturalized American since 2002, so the threat sounds more like political provocation, but it impresses investors.
- The trigger: Trump's spending bill
The pivot of the crisis is a billion-dollar bill, approved in the Senate and now in the House.
The proposal is a priority for Trump, who promises tax cuts, but Musk criticizes the $5 trillion increase in the debt ceiling and suffers from the end of incentives for electric vehicles, such as the $7,500 tax credit, essential for Tesla.
- Musk: “Spending without a cap? Insane!”
Musk blasted the bill as “insane spending” and accused Congress of leading the US into “debt slavery.” He also said:
“What’s the point of having a cap if it keeps getting higher and higher?”
He also promised to fund campaigns against lawmakers who support the bill.
- Bill passed by a narrow margin in the Senate
The Senate approved the proposal by a narrow margin, with a decisive vote from Vice President J.D. Vance.
It now goes to the House and could be sanctioned by July 4.
Among the cuts are environmental subsidies, which could directly impact the electric vehicle sector.
- Musk’s response: a new party
Musk has threatened to create the “America Party,” a movement to represent the political “center” and break away from the two-party system.
He has also promised to increase investment in the campaigns of candidates aligned with his vision.
- Tesla feels the impact on the stock market
Tesla shares closed down 5.34% at $300.71, after falling as much as 7% during the session.
The continued decline throughout the year demonstrates investor fears over the possible withdrawal of subsidies for EVs and the political instability involving Musk.
- Operational problems worsen the crisis
In addition to the political clash, Tesla faces increasing competition from companies such as BYD and is expected to report a drop in quarterly deliveries tomorrow.
Analysts expect a decline in sales in 2024, the first in years, while Musk promises recovery throughout the year.