Mask’s Trump Tirade Tank Stock, Healing suggests damage control

Thursday, June 5th, Tesla (NASDAQ:TSLA) Stocks plummeted, falling 14%, eliminating market value of over $150 billion. The sudden decline was caused by public nausea between TSLA CEO Elon Musk and President Trump.

Musk publicly criticised the president’s proposed tax and expenditure law, calling it “one big beautiful bill law.”

Above all, the bill has an impact on EV subsidies and is essential to Tesla’s business model. The bill will reduce numerous tax credits for the purchase and production of EVs. This also includes $7,500 in consumer credit. The bill also eliminates tailpipe emission rules that encourage carmakers to electrify their up-models and future models over the next decade.

In addition to concerns about EV tax credits and personal attacks on POTUS, Musk has also expressed concern about the bill’s “potential to increase the national deficit by $2.5 trillion over the next decade.” Meanwhile, the White House is challenging the claim.

In response, Potus threatened to cut off federal contracts with Musk companies, including Tesla and SpaceX.

“The easiest way to save money on budgets, billions, billions of dollars is to end Elon’s government subsidies and contracts. I’ve always been surprised that Biden didn’t do that!”

However, by the next day, the stock had rebounded to more than 5%, recovering some of the lost ground. The recovery came from reports suggesting potential emissions between Musk and Trump, although the White House rejected a later scheduled call.

Despite the rebound, analysts remained cautious, noting that the feud could have a long-term impact on federal mask companies, particularly with regard to regulatory approvals for innovations such as unmanned Robotaxis.

While we acknowledge the potential of TSLA investments, our conviction lies in the belief that some AI stocks offer higher returns and hold the greater promise of limited downside risk. If you’re looking for a very inexpensive AI stock that is also a major beneficiary of Trump’s tariffs and supervision, check out our free report. Best Short-Term AI Stocks.

Read next: Best and worst dowstock for the next 12 months and 10 unstoppable stocks that can double your money.

Disclosure: None.