Tesla shares down after Elon Musk row with Donald Trump | BBC News

Key Concepts:

• Tesla stock decline
• Federal subsidies for Tesla
• Elon Musk vs. Donald Trump feud
• National debt
• Electric vehicle (EV) tax credits/subsidies
• Government spending package

Tesla Stock Decline and Federal Subsidies

The video discusses the recent decline in Tesla's stock market performance. This decline is attributed, in part, to President Trump's threat to end some of the company's federal subsidies. The threat was made amidst an ongoing dispute between Trump and Tesla CEO Elon Musk.

Elon Musk vs. Donald Trump Feud

The video highlights the escalating feud between Elon Musk and Donald Trump. Musk criticized Trump's spending bill, referring to it as the "big beautiful bill," and its potential to increase the national debt. He even threatened to form a new political party in response. Trump retaliated by claiming that Musk receives more subsidies than any other individual and that without these subsidies, Tesla would likely fail and Musk would return to South Africa.

Government Spending Package and EV Subsidies

The spending package under consideration in Congress is estimated to add over $3 trillion to the national debt. A key element of this package, relevant to Tesla, is the proposed elimination of subsidies for electric vehicles (EVs). Currently, consumers receive tax breaks for purchasing or leasing EVs, which benefits EV manufacturers like Tesla.

Impact on Tesla Shares

The combination of Trump's threat to end subsidies and the potential elimination of EV tax credits in the spending package has negatively impacted Tesla's stock. On Tuesday, Tesla shares closed down nearly 5.5%.

Conclusion

The video outlines the complex interplay between political tensions, government policy, and market reactions affecting Tesla. The feud between Musk and Trump, coupled with the potential loss of federal subsidies for EVs, has created uncertainty and negatively impacted Tesla's stock performance. The future of these subsidies and the overall impact on Tesla remain to be seen.