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Elon Musk makes tesla lose $200 billion in value · Elon Musk Podcast

• 0:01
  Hey everybody. Welcome back to the Elon Musk
• 0:04
  Podcast. This is a show where we discuss
• 0:07
  the critical crossroads, The Shape, SpaceX, Tesla X, The
• 0:11
  Boring Company, and Neurolink. I'm your host, Will Walden.
• 0:17
  Donald Trump wants to cut federal subsidies to Elon Musk's
• 0:20
  companies and Tesla stock is already paying the price now.
• 0:26
  Trump proposed on Tuesday that DOGE should audit the billions
• 0:30
  of government support flowing to Elon Musk's owned ventures.
• 0:34
  He said such a move could save a fortune for taxpayers.
• 0:38
  The statement dropped as Tesla shares tumbled over 6% in pre
• 0:42
  market trading, signaling investor concern and Trump's
• 0:45
  renewed focus on Musk could damage key businesses like Tesla
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  and also SpaceX now. Trump added that the review
• 0:53
  should look at Musk's subsidies across electric vehicles,
• 0:56
  satellites, space exploration, hinting that the government
• 0:59
  should shut them down entirely if necessary.
• 1:02
  It's supposed to ended with a call for DOGE.
• 1:05
  Now they're going to launch an immediate review of Elon Musk's
• 1:09
  companies. Now.
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  Why would Donald Trump escalate this again?
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  Musk has been openly criticizing the same tax and spending
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  package Trump supports. He called the bill insane and
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  accused lawmakers who backed it of betraying their promises to
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  cut spending. The package, which nonpartisan
• 1:28
  analysts estimate would add $3 trillion to the national debt,
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  has become a central dividing point between Elon Musk and
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  Donald Trump. Their feud, already intense, now
• 1:39
  threatens to spill into policy that directly impacts Tesla's
• 1:42
  core operations and future revenue streams.
• 1:45
  And Trump claims Musk owes his entire success to government
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  support. He said Musk may get more
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  subsidy than any human being in history and would be out of
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  business without them. SpaceX holds roughly $22 billion
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  in federal contracts, while Tesla benefits from tax credits
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  tied to electric vehicles and charging infrastructure.
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  Removing this support could place real pressure on Tesla's
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  margins and on Musk's credibility as a tech founder
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  who often says he wants to eliminate government influence
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  in business. Now, Musk fired back almost
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  immediately on X, saying, I'm literally saying cut it all now.
• 2:23
  Now. Tesla's biggest bet right now,
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  Self Driving Robotaxi relies heavily on regulatory approval
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  from the US Transportation Department.
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  The company is testing a version in Texas that eliminates pedals
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  and steering wheels. Without subsidies or federal
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  cooperation, that entire effort could stall.
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  Tesla's long term valuation depends heavily on the success
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  of this robotaxi project, and any disruption to its regulatory
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  path could weigh down investor confidence.
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  That fear played out on Tuesday morning, with more than $50
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  billion in market value wiped off Tesla's books before trading
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  even began. Now, Musk's financial support
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  for Trump has already raised eyebrows.
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  He spent about $300 million on Trump's campaign, and it was
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  instrumental in launching DOGE. Now Musk accuses the new bill of
• 3:12
  undoing those gains and bloating the federal budget again.
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  He said the bill will erase the savings made through Doge and
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  warned he would fight to unseat every lawmaker who supported it.
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  He even vowed they will lose their primary next year.
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  If it is the last thing I do on this earth now.
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  Tesla CEO also revived the idea of starting a new political
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  party, mocking both Democrats and Republicans as the Porky Pig
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  Party. This rhetoric marks a sharp turn
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  from the months of relative silence between the two
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  billionaires, suggesting the temporary truce is over in early
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  June. Though Trump had already
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  threatened to target Musk's federal contracts if he didn't
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  stop criticizing the bill. The clash intensified from
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  there, pushing Tesla stock into a steep decline, which erased
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  $150 billion in market value in just a few days.
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  Our Tesla's international performance adds more pressure.
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  Sales in Sweden and Denmark fell for a sixth straight month in
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  June, reflecting weakening demand in Europe.
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  Analysts now expect Tesla to post disappointing second
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  quarter delivery figures on Wednesday.
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  Now, with weakening international numbers, the
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  company's reliance on U.S. sales becomes more critical, and any
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  potential subsidy cuts could make that domestic market more
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  volatile. Now, Tesla is already seeing
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  margin compression and growing competition in its core EV
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  segments. The stock traders warned that
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  the political feud is becoming a tangible financial risk.
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  Dennis Dick, the chief strategist at Stock Trader
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  Network, said Musk is hurting his own business by pushing back
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  so hard. He argued the Musk needs Trump
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  support far more than Trump needs Musk's donations or ideas.
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  the US market for EV still depends heavily on tax credits
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  and infrastructure funding, and Dick said that if Musk loses
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  Trump, he could lose a lot more than that.
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  The attention is already influencing Republic strategy
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  heading into the 2026 midterms. Party officials are worried
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  Musk's attacks on GOP lawmakers could fracture their electoral
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  base, especially in fiscally conservative districts.
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  Musk's reach on social media remains vast, but it's unclear
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  whether his public feuds help or hurt the Republicans he claims
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  to support. And with the spending bill
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  moving forward, some party leaders fear the ongoing clash
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  could complicate efforts to protect their slim congressional
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  majority. Trump has made it clear he sees
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  Musk as a liability and a political target.
• 5:39
  The president has repeatedly used Musk's wealth and federal
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  support to criticize the current direction of Republican economic
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  policy, which he says has drifted too close to corporate
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  welfare. By targeting Musk, Trump is not
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  just defending his tax plan. He's sending a message to the
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  business elite that political loyalty matters more than
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  financial contributions. And Musk may continue to lash
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  out, but the numbers are starting to hurt him and Tesla
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  and the stockholders. Between the drop, the drop in
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  Tesla stock weakening sales in Europe and the uncertainty of
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  regulatory future of the robo taxis, is empire is absorbing
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  real financial damage. If government support dries up,
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  the damage could grow even faster.
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  Musk said he's ready to lose every subsidy.
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  The market isn't sure he can afford it.
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  And if he continues on these tirades, the board of Tesla may
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  kick him out. Hey, thank you so much for
• 6:41
  listening today. I really do appreciate your
• 6:43
  support. If you could take a second and
• 6:45
  hit the subscribe or the follow button on whatever podcast
• 6:48
  platform that you're listening on right now, I greatly
• 6:51
  appreciate it. It helps out the show
• 6:52
  tremendously, and you'll never miss an episode.
• 6:55
  And each episode is about 10 minutes or less to get you
• 6:58
  caught up quickly. And please, if you want to
• 7:01
  support the show even more, go to Atreoncom Stage Zero.
• 7:07
  And please take care of yourselves and each other.
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  And I'll see you tomorrow.