Tesla(US:TSLA) New York Postยท2025-07-01 14:38Core Viewpoint - Tesla's stock experienced a significant decline of over 7%, losing billions in market value due to renewed tensions between CEO Elon Musk and former President Donald Trump, particularly regarding federal subsidies and a tax bill affecting electric vehicles [1][2][3]. Group 1: Stock Performance - Tesla's stock fell by $22.78, or 7.17%, to $294.88 per share, down from a previous close of $317.66 [1]. - The stock's decline is part of a broader trend, as similar tensions in June previously wiped out over $150 billion from Tesla's valuation in a single day [7]. Group 2: Political Tensions - Trump criticized Musk on his Truth Social platform, threatening to eliminate federal subsidies for Tesla and SpaceX, claiming Musk benefits excessively from government support [2][3]. - Musk has publicly opposed a Trump-backed spending bill that could reduce electric vehicle tax credits, which he described as "utterly insane and destructive" [4][14]. Group 3: Market Impact and Analyst Insights - Analysts predict that the potential changes from the tax bill could cost Tesla approximately $1.2 billion in annual profit [4]. - Wedbush analyst Dan Ives noted that the ongoing political drama is becoming tiresome for shareholders, who prefer Musk to concentrate on Tesla's operations rather than engage in political disputes [11][12]. Group 4: Sales Performance - Tesla is expected to report a year-over-year decline of 11% in global vehicle deliveries, adding to the pressure on the stock [13]. - Additionally, Tesla's sales in Sweden and Denmark have decreased for six consecutive months as of June [14].