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Tesla shares (Nasdaq: TSLA) are tumbling in premarket trading Tuesday morning, falling 4.56% to $303.18 as of 5:05 AM EDT after closing at $317.66 on Monday. The electric vehicle maker’s stock is caught in the crossfire of a renewed political spat between CEO Elon Musk and President Donald Trump, marking the end of what analysts called a “temporary ceasefire” between the two high-profile figures. This latest development comes at a particularly sensitive time for Tesla, as the company prepares to release its crucial second-quarter delivery figures.
 

Trump-Musk Feud Reignites Over Spending Bill

The dormant phase in the Musk-Trump relationship ended abruptly when the Tesla CEO launched a series of attacks on X against the “One Big Beautiful Bill” working its way through the U.S. Senate.

Musk criticized senators supporting the proposed spending legislation, warning that it could add $5 trillion to the deficit and threatening that “Every member of congress who campaigned on reducing government spending will lose their primary next year if it is the last thing I do on Earth.”

President Trump quickly retaliated with posts on Truth Social in the early hours of Tuesday, directly threatening Tesla’s business interests. Trump suggested that the Department of Government Efficiency, which was effectively run by Musk, “should take a good, hard look” at the subsidies offered to Musk’s companies. The president also stated he was “strongly against the EV mandate,” signaling potential policy changes that could impact Tesla’s core business.

This marks a significant escalation from their previous public disagreement on June 5, when Tesla shares plummeted 14% following personal attacks between the two figures. After that incident, a truce was agreed upon and Tesla’s stock price recovered 20%, but Tuesday’s developments suggest that peace was only temporary.
 

Tesla Stock Under Pressure Amid Delivery Concerns

The timing of this political drama couldn’t be worse for Tesla, which is preparing to release its second-quarter delivery figures. The company has been under intense scrutiny from traders and fund managers who are hoping for signs of sales recovery now that Musk has supposedly left his role at the Department of Government Efficiency (DOGE) to return full-time to his businesses.

Tesla’s stock has already declined 21% year-to-date, underperforming significantly compared to the broader market. Adding to investor concerns, RBC Capital Markets analyst Tom Narayan published a note last week forecasting deliveries of just 366,000 vehicles in the second quarter, well below the consensus estimate of 406,000.

Such a disappointing delivery number, combined with the renewed controversy surrounding Musk and Trump, could create significant headwinds for Tesla’s stock performance in the second half of 2025. The company’s current market capitalization stands at $1.02 trillion, with a trailing P/E ratio of 181.52, making it particularly vulnerable to any negative sentiment.

With analyst price targets ranging from a low of $115 to a high of $500, and an average target of $306.07, Tesla’s stock remains highly volatile and sensitive to both operational performance and external political factors.

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