Why Tesla Stock Is Plummeting Today
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S of Tesla (TSLA -5. 00%) are falling on Tuesday, down 4. 3% as of 12:23 p. The drop comes as the S&P 500 and Nasdaq Composite lost 0. 8%,...
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July 1, 2025
12:45 PM
The Motley Fool
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S of Tesla (TSLA -5. 00%) are falling on Tuesday, down 4. 3% as of 12:23 p
The drop comes as the S&P 500 and Nasdaq Composite lost 0. 8%, respectively
Tesla CEO Elon Musk and President Donald Trump reignited their dormant social media conflict yesterday with Trump directly calling for the government to review the subsidies Musk's companies -- including Tesla -- receive
Trump calls for DOGE to look at Musk's companies Musk took to X once again to criticize Trump's "Big Beautiful Bill" currently working its way through Congress
The bill is highly controversial, with the version expected to add $3. 3 trillion to the U
The newest version also includes not just a repeal of clean energy subsidies included in previous versions, but a tax on certain green initiatives
Musk took to X to criticize the bill and the government's "insane spending. " Trump responded on Truth Social, saying, "Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would bably have to close up shop and head back to South Africa. " Image source: Getty Images
He went on to call for the Department of Government Efficiency (DOGE) -- which Musk recently stepped down from running -- to look into the subsidies, saying: "Perhaps we should have DOGE take a good, hard, look at this
BIG MONEY TO BE D. " Tesla investors are ly worried the president may through on the threat
Tesla is not in a great position Tesla is seeing its sales decline in key across the globe
The rollout of its revamped Model Y is not as strong as many had hoped, as it faces increasing competition from legacy makers and Chinese rivals BYD
I think the stock is significantly overvalued with a current price-to-earnings ratio (P/E) of 180
Johnny Rice has no position in any of the stocks mentioned
The Motley Fool has positions in and recommends Tesla
The Motley Fool recommends BYD Company
The Motley Fool has a disclosure policy.
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