Tesla’s shares fell on Wednesday as CEO Elon Musk publicly criticised president Trump’s signature tax and spending bill, urging voters to pressure politicians to reject the legislation.
Tesla stock traded lower as Elon Musk continued to publicly oppose Donald Trump’s major tax and spending bill. The Tesla (TSLA) share price closed at 332.05 on Wednesday (4 June), down 3.78% after opening the day at 345.10. It has also decreased by more than 9% since 29 May.
Once a vocal supporter of Donald Trump and his policies, Musk appears to have turned the tables on the US president’s plans. The automaker’s CEO has described the legislation as fiscally irresponsible and damaging to the country’s future.
Musk’s comments add to what has become an increasingly vocal campaign against the bill, which includes expansive tax reductions and increased defence spending. Passed by the House of Representatives, the legislation is currently being scrutinised in the Senate.
The nonpartisan Congressional Budget Office estimates it could inflate the national deficit by as much as $2.4 trillion over the next decade. Musk referenced this figure in one of his many tweets on the matter.
Musk publicly criticises Trump’s spending bill
In a number of critical tweets posted on his X platform, Musk said that the “outrageous, pork-filled” spending bill will “massively increase the already gigantic budget deficit to $2.5 trillion (!!!) and burden America [sic] citizens with crushingly unsustainable debt.”
He then went one step further, urging American voters to pressure their elected officials to reject the legislation. He tweeted: “Call your Senator, Call your Congressman, Bankrupting America is NOT ok! KILL the BILL.”
The outspoken billionaire, who previously headed up Trump’s Department of Government Efficiency (DOGE) for 129 days, did not hold back his true thoughts. Another post read: “If the massive deficit spending continues, there will only be money for interest payments and nothing else!”
Rift between Musk and Trump widens
After strongly backing Trump’s return to the presidency, Musk has now shifted his tone. It all centres on Trump’s so-called “One Big Beautiful Bill” which is considered a centrepiece of his second-term agenda.
Musk has branded the legislation a “disgusting abomination” and accused lawmakers of betraying the public trust. It marks his first major break with Trump since leaving a government cost-cutting initiative earlier this month.
While the White House has dismissed concerns about the bill’s fiscal impact, calling deficit warnings a “hoax,” Musk remains adamant. He has suggested holding politicians accountable in next year’s midterm elections, warning that voters should “fire all politicians who betrayed the American people.”
The ongoing political controversy has affected Tesla’s public image and share performance. Some observers note that Musk’s increasingly partisan activity has alienated parts of Tesla’s customer base. There have been multiple media reports of protests outside company showrooms in the US.
With the war of words likely to continue, the impact on Tesla’s stock price is yet to become clear. Stay tuned to all the very latest market developments at FXTrustScore.com.
