Trump Vs. Musk: President Selling His Tesla — Is Targeting Robotaxis Next? - Tesla (NASDAQ:TSLA)

A feud between Tesla Inc TSLA CEO Elon Musk and President Donald Trump escalated Thursday with comments made in interviews and across social media.

The fight sent shares of Tesla lower Thursday and the stock could go lower with the potential for Trump to harm the electric vehicle sector and the company.

What Happened: Musk's opposition to the "Big Beautiful Bill" saw Trump accuse the Tesla CEO of only speaking out in opposition due to the bill hurting EV tax credits and his own company.

A series of back-and-forth messages on social media saw some attacks against Tesla and the government and some personal attacks.

"This is an unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted. The President is focused on passing the historic piece of legislation and making our country great again," White House Press Secretary Karoline Leavitt told Benzinga when asked for comment on some tweets made by Musk.

Tesla stock posted its biggest one-day market capitalization fall on Thursday, with investors worried about the damage the fight could cause to Musk-related companies.

Trump threatened to pull government subsidies related to SpaceX and already planned to remove EV tax credits, which could harm Tesla and the overall electric vehicle sector. Here's a look at some of the areas that could be impacted.

Robotaxi Concerns: Given Trump’s past opposition to autonomous vehicles, or robotaxis, one area that could be closely watched now is the future of these vehicles.

Hours before Musk unveiled the Tesla Cybercab in California on Oct. 10, 2024, Trump spoke at the Detroit Economic Club and took on autonomous vehicles.

“Do you like autonomous? Does anybody like an autonomous vehicle? Know what that is? Right? When you see a car driving along? Some people do, I don’t know. A little concerning to me, but the autonomous vehicles we’re going to stop from operating on American roads," Trump said.

Trump’s comments came despite his growing friendship with Musk, who had been campaigning for him in the 2024 election.

After once threatening to ban autonomous vehicles in America, Trump appeared to have had a change of heart and eased restrictions on self-driving vehicles. The reversal could help Tesla in its push to expand FSD and bring robotaxis to the market.

With Tesla set to launch its robotaxi service in Texas next week, all eyes will be on Trump to see if he reverses course again on the issue.

Tesla Brand Damage: Tesla has suffered from brand damage in the last year. A series of protests took on the EV company, and some owners traded in their vehicles due to Musk's political push.

Previously appealing to fans of clean energy initiatives and Silicon Valley investors, Tesla appeared to change its target demographic with Trump supporters and MAGA (Make America Great Again) fans buying Tesla vehicles to show support for Musk and his backing of the president.

With a feud between Trump and Musk now escalated, Trump fans might be the last people who want to buy a Tesla vehicle.

A report on Friday from the New York Post said Trump is planning to sell or give away the red Tesla Model S he bought on the White House lawn in a show of public support for Musk and Tesla at the time, as the brand saw several violent attacks against stores and vehicles.

While Trump can not drive the vehicle due to presidential rules, he said he would leave it on the White House lot for staff use.

Trump selling his Tesla vehicle could be negative for the EV company and show that his support for it has been withdrawn.

Other Areas: In addition to the above-mentioned items, Trump's plan to end the $7,500 EV tax credit will hurt Tesla and the sector.

Musk has been supportive of ending this incentive and analysts say it could actually help the company and crush Tesla's rivals in the sector.

The Tesla CEO and his companies have been under past and current investigations by many government organizations including the SEC and DOJ. While working with the government through the Department of Government Efficiency, Musk replaced the leaders at some of the organizations that investigate and regulate his companies.

The rift between Musk and Trump could lead to a return of investigations against the CEO and his companies.

Musk and his SpaceX company have received government contracts in the past and those could come under question, as Trump seemed to signal in one social media post. Trump said government subsidies and contracts that help Musk could be terminated to save billions of dollars. Musk indicated that he could end the SpaceX Dragon program, which has brought astronauts to and from the International Space Station.

SpaceX's Starlink was also in talks to secure deals with the FAA and is a major player in providing internet in humanitarian efforts and international conflict areas like Ukraine. The battle between Trump and Musk could put into question whether Trump could try to block Musk's efforts.

TSLA Price Action: Tesla stock is up 5.8% to $301.09 on Friday versus a 52-week trading range of $167.41 to $488.54. Tesla stock is down 20.7% year-to-date in 2025, with shares falling over 12% in the last five days.

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