Hedge funds cut NFLX, keep big bets on MSFT, AMZN, add NVDA
Investing.com -- Tesla (NASDAQ:TSLA) stock fell 6% on Tuesday morning as the electric vehicle maker faced continued pressure after President Donald Trump suggested he might consider deporting CEO Elon Musk.
The latest decline follows Trump’s comments to reporters outside the White House, where he said he would "have to take a look at" potentially deporting the South African-born executive. This marks a further deterioration in the relationship between the former allies, who have been publicly feuding in recent weeks.
The tensions between Trump and Musk, who was previously a major supporter of Trump’s presidential campaign, have escalated over disagreements about government spending and EV subsidies. Trump took to Truth Social to claim that Musk "may get more subsidy than any human being in history" and suggested that without government support, Musk "would probably have to close up shop and head back home to South Africa."
Trump also threatened to withdraw government subsidies from Musk’s companies and suggested that the Department of Government Efficiency (DOGE) - which Musk himself had pitched during Trump’s campaign - could scrutinize US funding for rocket launches, satellites, and electric-car production.
The conflict initially erupted after Musk criticized the Republican tax-cut package that would end the $7,500 consumer tax credit for electric vehicle purchases. Musk has denied that his opposition is based on preserving subsidies for his companies, stating on X: "I am literally saying CUT IT ALL. Now."