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Business Jul 01, 2025

Tesla stocks tumble following Trump's deportation threat

Tesla stock dropped nearly 8% on Tuesday after President Trump threatened to deport Elon Musk for criticizing his new bill.
The news rattled investors, sparking worries about political risks and Tesla's future with government support.
The dip also affected major US stock indices like the Dow, S&P 500, and Nasdaq.

TL;DR

'Political risks': That's what investors are worried about now

When big names clash—especially over policies that impact tech and green energy—it can shake up markets fast.
Investors are now anxious about whether Tesla could lose key subsidies or face more government scrutiny, especially since Musk recently called for rolling back some of these perks.

Trump hints at investigations into Tesla

Trump suggested Musk was upset about losing electric vehicle mandates in the bill and hinted at possible investigations into Tesla's federal funding.
All this uncertainty left investors on edge about what comes next for both him and Tesla.