Tesla(US:TSLA) Feng Huang Wang·2025-07-11 01:31Core Points - The relationship between President Trump and Elon Musk has deteriorated, particularly following the nomination of Jonathan Morrison as the head of the National Highway Traffic Safety Administration (NHTSA) [1][2] - Morrison has a history of criticism towards Tesla and has previously engaged in disputes with the company, raising concerns about potential regulatory actions against Tesla [1][2] Group 1: Regulatory Environment - Jonathan Morrison has been nominated to lead NHTSA, where he previously served as chief legal counsel and had conflicts with Tesla [1] - NHTSA has conducted multiple investigations into Tesla, including a significant inquiry into the company's Full Self-Driving (FSD) system and several fatal accidents related to its Advanced Driver Assistance Systems (ADAS) [2] Group 2: Financial Implications - Recent budget and tax legislation supported by Trump is expected to significantly increase federal debt and eliminate subsidies for electric vehicles and renewable energy, which could adversely affect Tesla's business [2] - Trump has warned Musk that he could take direct action against Tesla, with NHTSA being a potential tool for such actions [2]