1 00:00:01,920 --> 00:00:04,520 Hey everybody. Welcome back to the Elon Musk 2 00:00:04,520 --> 00:00:07,120 Podcast. This is a show where we discuss 3 00:00:07,320 --> 00:00:11,520 the critical crossroads, The Shape, SpaceX, Tesla X, The 4 00:00:11,520 --> 00:00:15,600 Boring Company, and Neurolink. I'm your host, Will Walden. 5 00:00:17,600 --> 00:00:20,920 Donald Trump wants to cut federal subsidies to Elon Musk's 6 00:00:20,920 --> 00:00:26,000 companies and Tesla stock is already paying the price now. 7 00:00:26,120 --> 00:00:30,760 Trump proposed on Tuesday that DOGE should audit the billions 8 00:00:30,760 --> 00:00:34,520 of government support flowing to Elon Musk's owned ventures. 9 00:00:34,520 --> 00:00:37,800 He said such a move could save a fortune for taxpayers. 10 00:00:38,160 --> 00:00:42,120 The statement dropped as Tesla shares tumbled over 6% in pre 11 00:00:42,120 --> 00:00:45,360 market trading, signaling investor concern and Trump's 12 00:00:45,360 --> 00:00:48,680 renewed focus on Musk could damage key businesses like Tesla 13 00:00:49,080 --> 00:00:53,320 and also SpaceX now. Trump added that the review 14 00:00:53,320 --> 00:00:56,240 should look at Musk's subsidies across electric vehicles, 15 00:00:56,240 --> 00:00:59,480 satellites, space exploration, hinting that the government 16 00:00:59,480 --> 00:01:02,120 should shut them down entirely if necessary. 17 00:01:02,120 --> 00:01:04,720 It's supposed to ended with a call for DOGE. 18 00:01:05,440 --> 00:01:09,960 Now they're going to launch an immediate review of Elon Musk's 19 00:01:09,960 --> 00:01:11,520 companies. Now. 20 00:01:11,520 --> 00:01:14,480 Why would Donald Trump escalate this again? 21 00:01:14,960 --> 00:01:18,320 Musk has been openly criticizing the same tax and spending 22 00:01:18,320 --> 00:01:21,560 package Trump supports. He called the bill insane and 23 00:01:21,560 --> 00:01:24,760 accused lawmakers who backed it of betraying their promises to 24 00:01:24,760 --> 00:01:28,520 cut spending. The package, which nonpartisan 25 00:01:28,520 --> 00:01:32,840 analysts estimate would add $3 trillion to the national debt, 26 00:01:33,480 --> 00:01:36,440 has become a central dividing point between Elon Musk and 27 00:01:36,440 --> 00:01:39,720 Donald Trump. Their feud, already intense, now 28 00:01:39,720 --> 00:01:42,840 threatens to spill into policy that directly impacts Tesla's 29 00:01:42,840 --> 00:01:45,160 core operations and future revenue streams. 30 00:01:45,560 --> 00:01:48,560 And Trump claims Musk owes his entire success to government 31 00:01:48,560 --> 00:01:51,680 support. He said Musk may get more 32 00:01:51,680 --> 00:01:55,200 subsidy than any human being in history and would be out of 33 00:01:55,200 --> 00:01:59,080 business without them. SpaceX holds roughly $22 billion 34 00:01:59,080 --> 00:02:01,880 in federal contracts, while Tesla benefits from tax credits 35 00:02:02,200 --> 00:02:04,880 tied to electric vehicles and charging infrastructure. 36 00:02:05,280 --> 00:02:08,080 Removing this support could place real pressure on Tesla's 37 00:02:08,080 --> 00:02:11,480 margins and on Musk's credibility as a tech founder 38 00:02:11,480 --> 00:02:14,640 who often says he wants to eliminate government influence 39 00:02:14,640 --> 00:02:16,960 in business. Now, Musk fired back almost 40 00:02:16,960 --> 00:02:22,280 immediately on X, saying, I'm literally saying cut it all now. 41 00:02:23,280 --> 00:02:25,280 Now. Tesla's biggest bet right now, 42 00:02:25,800 --> 00:02:29,040 Self Driving Robotaxi relies heavily on regulatory approval 43 00:02:29,040 --> 00:02:30,920 from the US Transportation Department. 44 00:02:31,280 --> 00:02:34,680 The company is testing a version in Texas that eliminates pedals 45 00:02:34,680 --> 00:02:37,000 and steering wheels. Without subsidies or federal 46 00:02:37,000 --> 00:02:40,240 cooperation, that entire effort could stall. 47 00:02:40,720 --> 00:02:43,680 Tesla's long term valuation depends heavily on the success 48 00:02:44,080 --> 00:02:48,000 of this robotaxi project, and any disruption to its regulatory 49 00:02:48,000 --> 00:02:50,680 path could weigh down investor confidence. 50 00:02:51,000 --> 00:02:54,160 That fear played out on Tuesday morning, with more than $50 51 00:02:54,160 --> 00:02:59,040 billion in market value wiped off Tesla's books before trading 52 00:02:59,080 --> 00:03:02,080 even began. Now, Musk's financial support 53 00:03:02,080 --> 00:03:03,920 for Trump has already raised eyebrows. 54 00:03:04,560 --> 00:03:08,360 He spent about $300 million on Trump's campaign, and it was 55 00:03:08,360 --> 00:03:12,560 instrumental in launching DOGE. Now Musk accuses the new bill of 56 00:03:12,600 --> 00:03:15,440 undoing those gains and bloating the federal budget again. 57 00:03:15,880 --> 00:03:19,640 He said the bill will erase the savings made through Doge and 58 00:03:19,640 --> 00:03:23,040 warned he would fight to unseat every lawmaker who supported it. 59 00:03:23,400 --> 00:03:26,240 He even vowed they will lose their primary next year. 60 00:03:26,520 --> 00:03:30,080 If it is the last thing I do on this earth now. 61 00:03:30,080 --> 00:03:33,360 Tesla CEO also revived the idea of starting a new political 62 00:03:33,360 --> 00:03:37,120 party, mocking both Democrats and Republicans as the Porky Pig 63 00:03:37,120 --> 00:03:39,600 Party. This rhetoric marks a sharp turn 64 00:03:39,600 --> 00:03:42,040 from the months of relative silence between the two 65 00:03:42,040 --> 00:03:46,800 billionaires, suggesting the temporary truce is over in early 66 00:03:46,800 --> 00:03:48,680 June. Though Trump had already 67 00:03:48,680 --> 00:03:51,640 threatened to target Musk's federal contracts if he didn't 68 00:03:51,640 --> 00:03:54,720 stop criticizing the bill. The clash intensified from 69 00:03:54,720 --> 00:03:58,960 there, pushing Tesla stock into a steep decline, which erased 70 00:03:58,960 --> 00:04:03,560 $150 billion in market value in just a few days. 71 00:04:04,120 --> 00:04:07,040 Our Tesla's international performance adds more pressure. 72 00:04:07,040 --> 00:04:10,320 Sales in Sweden and Denmark fell for a sixth straight month in 73 00:04:10,320 --> 00:04:13,200 June, reflecting weakening demand in Europe. 74 00:04:13,520 --> 00:04:16,399 Analysts now expect Tesla to post disappointing second 75 00:04:16,399 --> 00:04:19,000 quarter delivery figures on Wednesday. 76 00:04:19,519 --> 00:04:21,720 Now, with weakening international numbers, the 77 00:04:21,720 --> 00:04:25,640 company's reliance on U.S. sales becomes more critical, and any 78 00:04:25,640 --> 00:04:29,560 potential subsidy cuts could make that domestic market more 79 00:04:29,560 --> 00:04:31,840 volatile. Now, Tesla is already seeing 80 00:04:32,080 --> 00:04:35,360 margin compression and growing competition in its core EV 81 00:04:35,400 --> 00:04:37,520 segments. The stock traders warned that 82 00:04:37,520 --> 00:04:40,560 the political feud is becoming a tangible financial risk. 83 00:04:41,160 --> 00:04:43,960 Dennis Dick, the chief strategist at Stock Trader 84 00:04:43,960 --> 00:04:47,320 Network, said Musk is hurting his own business by pushing back 85 00:04:47,320 --> 00:04:49,880 so hard. He argued the Musk needs Trump 86 00:04:49,880 --> 00:04:53,200 support far more than Trump needs Musk's donations or ideas. 87 00:04:53,680 --> 00:04:56,840 the US market for EV still depends heavily on tax credits 88 00:04:56,840 --> 00:05:00,360 and infrastructure funding, and Dick said that if Musk loses 89 00:05:00,360 --> 00:05:02,760 Trump, he could lose a lot more than that. 90 00:05:03,600 --> 00:05:06,320 The attention is already influencing Republic strategy 91 00:05:06,320 --> 00:05:09,480 heading into the 2026 midterms. Party officials are worried 92 00:05:09,480 --> 00:05:13,560 Musk's attacks on GOP lawmakers could fracture their electoral 93 00:05:13,560 --> 00:05:17,360 base, especially in fiscally conservative districts. 94 00:05:17,760 --> 00:05:21,040 Musk's reach on social media remains vast, but it's unclear 95 00:05:21,040 --> 00:05:24,320 whether his public feuds help or hurt the Republicans he claims 96 00:05:24,320 --> 00:05:26,400 to support. And with the spending bill 97 00:05:26,400 --> 00:05:29,360 moving forward, some party leaders fear the ongoing clash 98 00:05:29,360 --> 00:05:32,680 could complicate efforts to protect their slim congressional 99 00:05:32,680 --> 00:05:35,320 majority. Trump has made it clear he sees 100 00:05:35,320 --> 00:05:38,720 Musk as a liability and a political target. 101 00:05:39,480 --> 00:05:42,560 The president has repeatedly used Musk's wealth and federal 102 00:05:42,560 --> 00:05:45,920 support to criticize the current direction of Republican economic 103 00:05:45,920 --> 00:05:49,040 policy, which he says has drifted too close to corporate 104 00:05:49,040 --> 00:05:51,800 welfare. By targeting Musk, Trump is not 105 00:05:51,800 --> 00:05:54,520 just defending his tax plan. He's sending a message to the 106 00:05:54,840 --> 00:05:58,080 business elite that political loyalty matters more than 107 00:05:58,080 --> 00:06:01,720 financial contributions. And Musk may continue to lash 108 00:06:01,720 --> 00:06:04,560 out, but the numbers are starting to hurt him and Tesla 109 00:06:04,560 --> 00:06:07,720 and the stockholders. Between the drop, the drop in 110 00:06:07,800 --> 00:06:11,880 Tesla stock weakening sales in Europe and the uncertainty of 111 00:06:12,000 --> 00:06:17,840 regulatory future of the robo taxis, is empire is absorbing 112 00:06:17,920 --> 00:06:21,840 real financial damage. If government support dries up, 113 00:06:22,200 --> 00:06:25,000 the damage could grow even faster. 114 00:06:25,560 --> 00:06:28,440 Musk said he's ready to lose every subsidy. 115 00:06:29,040 --> 00:06:31,880 The market isn't sure he can afford it. 116 00:06:32,480 --> 00:06:37,320 And if he continues on these tirades, the board of Tesla may 117 00:06:37,320 --> 00:06:41,320 kick him out. Hey, thank you so much for 118 00:06:41,320 --> 00:06:43,520 listening today. I really do appreciate your 119 00:06:43,520 --> 00:06:45,080 support. 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