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 listening today. I really do appreciate your support. If you could take a second and hit the subscribe or the follow button on whatever podcast platform that you're listening on right now, I greatly appreciate it. It helps out the show tremendously, and you'll never miss an episode. And each episode is about 10 minutes or less to get you
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