01.07.2025 17:12

Tesla's stock plummeted 7.3% on July 1st, 2025, following President Donald Trump's scathing remarks about Elon Musk. This significant drop, the largest since June 5th, immediately impacted investor confidence, highlighting the precarious dependence of Tesla on government support.

Trump's criticism focused on the substantial subsidies Tesla receives, suggesting that without them, Musk's company might be forced to cease operations. His statement, "Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa," fueled market anxieties about the future of Tesla's government contracts and tax incentives. The resulting uncertainty regarding Tesla's financial stability sent ripples through the market.

Analysts warn that the loss of these crucial subsidies could severely hinder Tesla's ability to maintain its ambitious production targets and projected growth. This volatility underscores the inherent risks associated with electric vehicle companies heavily reliant on government policies, a pattern observed in previous political skirmishes involving Tesla.

Interestingly, despite the significant market reaction to the Tesla news, major cryptocurrencies, like Bitcoin, showed only minor fluctuations. At the time of writing, Bitcoin traded at $106,658.90, with a market capitalization of $2.12 trillion and a market dominance of 64.82% according to CoinMarketCap. While a slight 0.96% dip was observed in the past 24 hours, a modest 1.42% increase was recorded over the preceding week. This relative stability suggests a degree of market segmentation and independence between traditional equities and the cryptocurrency market. Further analysis from sources like Coincu is needed to fully comprehend the complex interplay of these factors.