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Tesla (NASDAQ:TSLA) turned lower in early trading on Tuesday after Elon Musk and President Trump bickered again on social media about the government tax and spending bill.
Following some complaints from Musk about the financial danger of the tax and spending bill and a teaser on starting a new political party, Trump counted that “Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa.”
Weighing in on the spat, Wedbush Securities analyst Dan Ives said the Musk-Trump soap opera remains an overhang on Tesla’s (NASDAQ:TSLA) stock with investors fearing that the Trump Administration will be more hawkish and show scrutiny around Musk related U.S. government spending related to his companies, and most importantly, the regulatory environment key to the future of Robotaxis and Cybercabs.
Shares of Tesla (TSLA) were down 5.6% at 7:59 a.m. after shedding 1.8% on Monday. Short interest on the EV stock stands at 2.4% of the total float. Private platform trading on SpaceX (SPACE) showed a 3% decline.
Looking ahead, Tesla (TSLA) is expected to release its Q2 deliveries report on Wednesday and its earnings report in a few weeks. Seeking Alpha analyst Cavenagh Research expects the company’s Q2 fundamentals to be a “disaster.”