Hey everybody. Welcome back to the Elon Musk
Podcast. This is a show where we discuss
the critical crossroads, The Shape, SpaceX, Tesla X, The
Boring Company, and Neurolink. I'm your host, Will Walden.
Donald Trump wants to cut federal subsidies to Elon Musk's
companies and Tesla stock is already paying the price now.
Trump proposed on Tuesday that DOGE should audit the billions
of government support flowing to Elon Musk's owned ventures.
He said such a move could save a fortune for taxpayers.
The statement dropped as Tesla shares tumbled over 6% in pre
market trading, signaling investor concern and Trump's
renewed focus on Musk could damage key businesses like Tesla
and also SpaceX now. Trump added that the review
should look at Musk's subsidies across electric vehicles,
satellites, space exploration, hinting that the government
should shut them down entirely if necessary.
It's supposed to ended with a call for DOGE.
Now they're going to launch an immediate review of Elon Musk's
companies. Now.
Why would Donald Trump escalate this again?
Musk has been openly criticizing the same tax and spending
package Trump supports. He called the bill insane and
accused lawmakers who backed it of betraying their promises to
cut spending. The package, which nonpartisan
analysts estimate would add $3 trillion to the national debt,
has become a central dividing point between Elon Musk and
Donald Trump. Their feud, already intense, now
threatens to spill into policy that directly impacts Tesla's
core operations and future revenue streams.
And Trump claims Musk owes his entire success to government
support. He said Musk may get more
subsidy than any human being in history and would be out of
business without them. SpaceX holds roughly $22 billion
in federal contracts, while Tesla benefits from tax credits
tied to electric vehicles and charging infrastructure.
Removing this support could place real pressure on Tesla's
margins and on Musk's credibility as a tech founder
who often says he wants to eliminate government influence
in business. Now, Musk fired back almost
immediately on X, saying, I'm literally saying cut it all now.
Now. Tesla's biggest bet right now,
Self Driving Robotaxi relies heavily on regulatory approval
from the US Transportation Department.
The company is testing a version in Texas that eliminates pedals
and steering wheels. Without subsidies or federal
cooperation, that entire effort could stall.
Tesla's long term valuation depends heavily on the success
of this robotaxi project, and any disruption to its regulatory
path could weigh down investor confidence.
That fear played out on Tuesday morning, with more than $50
billion in market value wiped off Tesla's books before trading
even began. Now, Musk's financial support
for Trump has already raised eyebrows.
He spent about $300 million on Trump's campaign, and it was
instrumental in launching DOGE. Now Musk accuses the new bill of
undoing those gains and bloating the federal budget again.
He said the bill will erase the savings made through Doge and
warned he would fight to unseat every lawmaker who supported it.
He even vowed they will lose their primary next year.
If it is the last thing I do on this earth now.
Tesla CEO also revived the idea of starting a new political
party, mocking both Democrats and Republicans as the Porky Pig
Party. This rhetoric marks a sharp turn
from the months of relative silence between the two
billionaires, suggesting the temporary truce is over in early
June. Though Trump had already
threatened to target Musk's federal contracts if he didn't
stop criticizing the bill. The clash intensified from
there, pushing Tesla stock into a steep decline, which erased
$150 billion in market value in just a few days.
Our Tesla's international performance adds more pressure.
Sales in Sweden and Denmark fell for a sixth straight month in
June, reflecting weakening demand in Europe.
Analysts now expect Tesla to post disappointing second
quarter delivery figures on Wednesday.
Now, with weakening international numbers, the
company's reliance on U.S. sales becomes more critical, and any
potential subsidy cuts could make that domestic market more
volatile. Now, Tesla is already seeing
margin compression and growing competition in its core EV
segments. The stock traders warned that
the political feud is becoming a tangible financial risk.
Dennis Dick, the chief strategist at Stock Trader
Network, said Musk is hurting his own business by pushing back
so hard. He argued the Musk needs Trump
support far more than Trump needs Musk's donations or ideas.
the US market for EV still depends heavily on tax credits
and infrastructure funding, and Dick said that if Musk loses
Trump, he could lose a lot more than that.
The attention is already influencing Republic strategy
heading into the 2026 midterms. Party officials are worried
Musk's attacks on GOP lawmakers could fracture their electoral
base, especially in fiscally conservative districts.
Musk's reach on social media remains vast, but it's unclear
whether his public feuds help or hurt the Republicans he claims
to support. And with the spending bill
moving forward, some party leaders fear the ongoing clash
could complicate efforts to protect their slim congressional
majority. Trump has made it clear he sees
Musk as a liability and a political target.
The president has repeatedly used Musk's wealth and federal
support to criticize the current direction of Republican economic
policy, which he says has drifted too close to corporate
welfare. By targeting Musk, Trump is not
just defending his tax plan. He's sending a message to the
business elite that political loyalty matters more than
financial contributions. And Musk may continue to lash
out, but the numbers are starting to hurt him and Tesla
and the stockholders. Between the drop, the drop in
Tesla stock weakening sales in Europe and the uncertainty of
regulatory future of the robo taxis, is empire is absorbing
real financial damage. If government support dries up,
the damage could grow even faster.
Musk said he's ready to lose every subsidy.
The market isn't sure he can afford it.
And if he continues on these tirades, the board of Tesla may
kick him out. Hey, thank you so much for
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And I'll see you tomorrow.