Trump-Musk Spat Creates More Problems for Tesla

Already suffering from steep declines in sales and profit, the carmaker could now face the president’s wrath.


With the blessing of the president, the Republican domestic policy bill would gut programs that add billions of dollars to Tesla’s bottom line. Mikayla Whitmore for The New York Times

By Jack Ewing
June 7, 2025, 5:01 a.m. ET

Elon Musk’s bitter falling-out with President Trump could be costly for Tesla.

As long as he is persona non grata in the Trump administration, Mr. Musk, the chief executive of Tesla, will struggle to persuade Republicans not to gut climate policies worth billions of dollars to the electric car and battery company.

Mr. Musk may also lose sway over federal regulators who could make or break his plans to deploy driverless taxis, which he has described as the future of the company.

Tesla is already suffering steep declines in sales and profit. The company’s share price plummeted 14 percent on Thursday, its biggest one-day decline, after Mr. Musk and Mr. Trump began insulting each other on social media. The stock recovered somewhat Friday, rising nearly 4 percent, perhaps on hopes that the men would reach a truce or because investors thought the stock was now a bargain after the previous day’s drop.

There was always a disconnect between Mr. Musk and his Republican allies on electric cars. The domestic policy bill passed by House Republicans and being considered by the Senate will hurt the electric car market in the United States, where Tesla is the largest manufacturer by far.

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Jack Ewing covers the auto industry for The Times, with an emphasis on electric vehicles.

A version of this article appears in print on June 7, 2025, Section B, Page 1 of the New York edition with the headline: Musk’s Spat With Trump Hurts Tesla. Order Reprints | Today’s Paper | Subscribe