Tesla Tanks as Musk Declares War on Trump's 'Big Beautiful Bill' with New Political Party

Tesla Inc. (NASDAQ:TSLA) is one of the stocks that Donald Trump owns. On July 7, Tesla (NASDAQ:TSLA) shares tumbled nearly 8% on after Elon Musk revealed plans to form a new U.S. political party, coined the "America Party", in direct opposition to Trump’s signing of the ‘Big Beautiful Bill’ into law.

The bill became the flashpoint of tensions between the US President and Musk when its legislation was first proposed. The Tesla CEO has fiercely resisted the bill as an “abomination” and stated that the bill would undermine DOGE efforts to curb wasteful spending and add trillions of dollars to the US debt over the next decade.

The bill would also reverse multiple tax credits for the EV industry, which also includes the $7,500 consumer credit. It would also eliminate tailpipe-emission rules that incentivize car manufacturers to electrify their future models over the next 10 years.

Musk’s escalating feud with POTUS has been stoking investor fears over leadership distraction and government subsidy threats.

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Disclosure: None.