Tesla Stock Falls as Trump, Musk Clash Again. Why the Feud Could Drag Shares Even Lower.

Elon Musk helped run the DOGE department until the end of May. (Getty Images)

Tesla stock tumbled early Tuesday after President Donald Trump suggested DOGE, the government department driving efficiencies, review subsidies given to Elon Musk’s companies as the pair reignited their public feud.

The electric-vehicle maker’s shares fell 4.4% to $303.77 in premarket trading, after sliding 1.8% Monday.

Musk ramped up his criticism of Trump’s tax and spending bill Monday, calling it “utterly insane and destructive.” He also promised to launch a new political party if the bill passed, adding that those in Congress who vote for it will lose their primary next year “if it’s the last thing I do on this Earth.”

The president hit back in a Truth Social post overnight, suggesting that the Department of Government Efficiency (DOGE)—the department Musk helped run until the end of May—should look into his companies’ government subsidies.

“Elon may get more subsidy than any human being in history, by far,” he said in a post on Truth Social. “No more Rocket launches, Satellites, or Electric Car Production and our Country would save a FORTUNE,” he added. “Perhaps we should have DOGE take a good, hard, look at this?”

Tesla investors ought to be at least a little concerned that things may get worse. The shares plunged 14% on June 5 when the Musk and Trump relationship spectacularly fell apart in an escalating war of words on social media.

It took more than two weeks, and a de-escalation, for the shares to return to their pre-feud levels. At the time Trump also questioned the government subsidies received by Musk’s companies.

Write to Callum Keown at callum.keown@dowjones.com