Live Tesla Stock Price Updates June 6: Will Tesla Stock Rebound Amid Musk & Trump Feud?

Yesterday Tesla’s (Nasdaq: TSLA) stock price fell… then fell some more… then fell again. Total it all up and the carnage amounted to a 14.26% drop yesterday. Total it all up, and the company lost an astounding $152 billion in market capitalization yesterday. 

Tesla investors are used to extreme volatility. Yet, even for a group that’s seen a series of extreme drawdowns in recent years, the reason for yesterday’s sell-off is new. Specifically, Elon Musk got into a feud with Donald Trump. 

After Musk had called Trump’s new tax bill a ‘disgusting abomination’ in recent days, the back and forth heated up in recent days. Let’s examine why this is weighing on Tesla’s stock. 

EV Credits Removed from “One Big Beautiful Bill” 

Musk recently departed his leadership of DOGE, or The Department of Government Efficiency. The stated reason for Musk’s departure was his status as a ‘Special Government Employee.’ Using that role includes limitations, such as a limit of 130 days per year spent on government work. 

However, pressure has also been ramping up on Musk to return to spending more time on his core companies like Tesla, SpaceX, and xAI. In addition, DOGE has largely been unable to deliver promised efficiency goals, with even the most optimistic savings totals (compiled from DOGE itself) at $180 billion. That’s a far cry from the promise of a trillion dollars or more saved annually. 

Musk’s departure from the Administration seemed amicable, with a May 30th press conference in the Oval Office with Trump. However, since departing, Musk has become critical of the Administration. In particular, he’s focused his attention on the “One Big, Beautiful Bill.” 

Musk’s stated reasons for opposition are that the bill continues to raise government debts. With Musk having led an agency created to address Federal deficits, his displeasure in this area makes sense. However, how vocal Musk became has been surprising. Comments like calling the bill a ‘disgusting abomination’ aren’t normally aired in public. 

One concerning aspect of the bill for Tesla investors is that it removes the $7,500 Federal clean vehicle tax. In addition, the bill charges EV drivers an annual $250 fee that’s meant to correct for the fact EV drivers don’t pay gas taxes.. The fee has been criticized as third parties have calculated its several-fold the taxes drivers of gas-powered cars pay annually.  While a version that removes these incentives has passed the House, the bill hasn’t passed the Senate. 

So, there’s widespread belief Musk’s opposition to the bill also comes as a last-minute ‘Hail Mary’ to derail the bill and preserve benefits for the electric vehicle industry. 

What This Could Mean for Tesla’s Stock 

The bottom line is that Tesla’s stock has benefited since November in large part thanks to the belief that Musk’s close relationship with Trump would lead to better legislation for the company. Tesla shares gained more than 50% from election day to Christmas, for example. 

So, it’s not surprising that shares trended south yesterday as the opposite event is now playing out. That is to say, the Musk and Trump feud is now so dramatic that Musk’s companies face being actively targeted. Yesterday, Trump posted the following on Truth Social:

“The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts. I was always surprised that Biden didn’t do it!”

The post led Musk to say SpaceX would be cancelling its Dragon spacecraft – although he did later backtrack that comment. 

Regardless, it’s now clear that any escalation of this feud is now one of the primary risks to holding Tesla’s stock. The company traded for around $170 per share last summer when Musk was campaigning for Trump and $242 per share shortly before election day. 

With Tesla still trading at $284 and recent results being poor, Tesla maintains significant downside if Musk stays in the middle of the news cycle if his conflict with Trump remains front page news.

We’ll be tracking Tesla’s share prices movements throughout the day on this live blog. 

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