Tesla stocks tumble as Donald Trump threatens Elon Musk

US President Donald Trump has sent Tesla stocks tumbling after he threatened Elon Musk on Tuesday. It came after the pair renewed their war of words over the President's so-called "Big Beautiful Bill", which Telsa-owner Musk has been a vociferous critic of.

Following new criticism from Musk about the bill, Trump said in a social media post that the federal government should look into cutting subsidies some of the billionaire tech entrepreneur's companies, like SpaceX and Tesla, receive. Writing on his Truth Social platform, the President said: "Elon Musk knew, long before he so strongly Endorsed me for President, that I was strongly against the EV Mandate. It is ridiculous, and was always a major part of my campaign. Electric cars are fine, but not everyone should be forced to own one.

"Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa.

"No more Rocket launches, Satellites, or Electric Car Production, and our Country would save a FORTUNE. Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!", he added.

Musk was born in South Africa, but has spent decades in the US and is an American citizen.

The billionaire is thought to have spent at least $260million on efforts to get Trump reelected, and had until recently been in charge of Doge (the Department of Government Efficiency), an initiative tasked with finding large government spending cuts.

Musk stepped back from the role in late May to concentrate on his various companies, with both he and Trump offering glowing praise for each other as he officially signed off in the Oval Office.

The pair soon fell out after Musk launched strident criticism the spending bill, unhappy at the trillions it is expected to add to the national deficit, before the two men appeared to make amends and dialled down their language.

But on Monday, Musk lashed out multiple times at Republicans for backing Trump's tax cuts bill, calling the GOP "the PORKY PIG PARTY!!" for including a provision that would raise the nation's debt limit by $5 trillion and calling the bill "political suicide" for Republicans, prompting blowback from Trump.

Tesla's stock price fell more than 5% in premarket trading early on Tuesday following Trump's post, The Independent reported.

Musk hit back at the subsidies threat, writing: "I am literally saying CUT IT ALL. Now."

He has rejected the President's claim that the EV mandate is behind his opposition, previously writing on social media: "Keep the EV/solar incentive cuts in the bill, even though no oil & gas subsidies are touched (very unfair!!), but ditch the MOUNTAIN of DISGUSTING PORK in the bill".

The Senate bill includes $4.5 trillion in tax cuts, according to the latest CBO analysis, making permanent Trump's 2017 rates, which would expire at the end of the year if Congress fails to act, while adding the new ones he campaigned on, including no taxes on tips.

The Senate package would roll back billions of dollars in green energy tax credits, which Democrats warn will wipe out wind and solar investments nationwide. It would impose $1.2 trillion in cuts, largely to Medicaid and food stamps, by imposing work requirements on able-bodied people, including some parents and older Americans, making sign-up eligibility more stringent and changing federal reimbursements to states.

Additionally, the bill would provide a $350 billion infusion for border and national security, including for deportations, some of it paid for with new fees charged to immigrants.

Senate Republicans hauled the bill to passage on Tuesday by the narrowest of margins, but it still needs to go back before the House before Trump can sign it into law.