Investing.com -- Tesla (NASDAQ:TSLA) shares fell 7% following President Donald Trump’s public criticism of the company and its CEO, Elon Musk. Trump expressed disappointment in Musk, citing a disagreement over legislative matters, which has cast uncertainty on their future relationship.
Trump’s comments came after a dispute over the "big beautiful bill," a reference to the house GOP tax plan. The president stated that Musk was only upset because an electric vehicle (EV) mandate was removed from the bill. Trump also suggested that Musk had been fully aware of the bill’s details before expressing his disapproval, hinting at a potential personal rift to come.
"I’m very disappointed with Elon," Trump said. "I’ve helped him a lot. He knew the inner workings of the bill better than anybody sitting here. He had no problem with it. All of a sudden he had a problem, and he only developed the problem when he found out we’re going to cut the EV mandate"
Musk, meanwhile, advocated for a "Slim Beautiful Bill," praising aspects of the legislation while criticizing others. He called for maintaining cuts to EV and solar incentives, despite what he perceived as unfair treatment compared to untouched oil and gas subsidies. Musk’s stance was that the bill should keep its beneficial elements but discard what he referred to as a "MOUNTAIN of DISGUSTING PORK."
The public exchange between Trump and Musk has led to investor concern, as the relationship between the two has been considered influential in the past.