Could Tesla Survive the Trump-Musk Feud? Electric Future in Jeopardy as Sales Dive and Laws Threaten EV Revolution
Tesla faces mounting threats as Elon Musk’s feud with Trump heats up, electric car sales fall, and aggressive new bills target EV giants.
- 14%: Tesla’s stock plunge in a single day after Musk-Trump feud went public
- $7,500: Federal EV tax credit at risk of elimination in new Republican-backed bill
- $250: Proposed annual fee for U.S. electric vehicle owners
- 4%: Partial rebound in Tesla stock the day after the crash
Tesla’s rollercoaster week just shattered records—with billions in value wiped out, political support vanishing, and Elon Musk’s empire teetering as never before. Tensions between the Tesla CEO and former President Trump exploded on social media, unleashing market chaos and raising urgent questions for the U.S. electric vehicle industry.
While Tesla battles declining sales and shrinking profits, a political firestorm now threatens the very incentives that have fueled America’s EV revolution. Musk’s very public falling-out with Donald Trump could leave Tesla critically exposed as Republicans push forward a sweeping anti-EV bill.
New legislation under consideration in the Senate could permanently reshape the U.S. electric car market. If passed, the bill would:
– Remove the $7,500 federal tax credit for new EV buyers
– Slash subsidies for lithium mining and U.S. battery gigafactories
– Eliminate support for expanding charging infrastructure
– Impose an annual $250 fee for EV drivers
Tesla, America’s largest EV maker, could be hardest hit, just as its sales and stock price are already reeling. Musk’s feud with Trump adds another critical layer of risk. For years, despite tensions, Tesla managed to bridge divides on Capitol Hill—but with Musk now persona non grata in Trump’s camp, Tesla stands to lose both political and regulatory leverage.
Musk’s future-shaping plans for autonomous “robotaxis” now hang in the balance, too. Federal agencies like the National Highway Traffic Safety Administration (NHTSA) hold the power to grant—or withhold—crucial approvals. If Tesla’s top champion is alienated from the incoming administration, the path ahead could be perilous.
Q: Why Are Republicans Cracking Down on Electric Cars?
Lawmakers argue that EV incentives cost taxpayers too much and unfairly favor wealthy buyers. Environmental groups, however, warn that the proposed annual $250 fee acts as a punitive measure targeting climate progress. The phased-out credits and lost grants could cost the industry billions, weaken American Tesla‘s global edge, and delay the clean energy transition.
Q: How Has the Musk-Trump Feud Impacted Tesla’s Stock?
The Musk-Trump feud detonated online, leading to Tesla’s largest one-day stock drop in years—a staggering 14%. Uncertainty swirled over whether the two influential figures would bury the hatchet. The stock rebounded 4% the next day, signaling some investor hope, but volatility remains high.
How Could Policy Shifts Change Tesla’s Trajectory in 2025?
Should the bill pass, Tesla loses not just consumer incentives but also crucial regulatory advantages like clean air credits, which allow them to profit from selling emissions permits to other automakers. These credits have long been a lifeline for Tesla’s profits—now, they could disappear.
Meanwhile, global rivals like BYD and Volkswagen continue to invest in electric innovation, threatening U.S. leadership just as domestic support fractures. Policy changes in Washington would reverberate across supply chains, jobs, and world climate targets.
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How to Prepare: What Can EV Owners and Investors Do Right Now?
– Track congressional votes on energy and transportation bills
– Watch for official statements from The White House and major EV policy influencers
– Monitor Tesla’s quarterly earnings for early signals of impact
– Consider diversifying EV investments as sector volatility rises
Act Now: Don’t Miss the Next Big Move in Tesla’s Tumultuous Journey
- Follow news sources for real-time policy updates
- Review your investment exposure to the EV sector
- Stay informed about evolving tax and incentive programs
- Engage with your representatives about clean energy policy
The stakes for Tesla—and the future of electric mobility—have never been higher. Stay sharp, stay curious, and watch this space for major updates.