Tesla stock falls amid Trump deportation threats directed at Elon Musk
July 1 (UPI) -- The share prices for Tesla stock tumbled on Tuesday after President Donald Trump suggested the federal government might end its electric vehicle subsidies and deport owner Elon Musk.
Trump suggested Tesla and other Musk-owned enterprises would end without federal subsidies.
"Electric cars are fine, but not everyone should be forced to own one," Trump said in a Truth Social post.
"Elon may get more subsidy [sic] 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," Trump continued.
"No more rocket launches, satellites or electric car production, and our country would save a fortune," the president said.
Trump's threat against Tesla subsidies might have triggered a drop in Tesla stock prices during Tuesday's trading.
Tesla's share prices on NASDAQ closed at $317.66 on Monday after opening at $319.90 and reaching a high of $325.58 amid trades totaling 76.7 million shares.
The number of shares sold on Tuesday was much higher at 143.2 million, with an opening price of $298.42, a high of $305.88 and closing at $300.71.
Musk throughout the weekend and into Tuesday railed against the proposed fiscal year 2026 budget bill on social media.
"It is obvious with the insane spending of this bill, which increases the debt ceiling by a record [$5 trillion] that we live in a one-party country -- the Porky Pig Party!" Musk said Monday in a post on X, ABC News reported.
He also said the bill would cost workers to lose millions of jobs and threatened to fund primary challenges for every Republican senator who voted in favor of House Resolution 1, CBS News reported.
The Senate approved the budget bill on a 51-50 vote after Vice President JD Vance cast the tie-breaking vote early Tuesday afternoon.
Trump told reporters on Tuesday he would "have to take a look" at possibly deporting Musk, who is a naturalized U.S. citizen.
The president also suggested having the Department of Government Efficiency investigate Musk, which Musk led for 130 days until the end of May.
The public exchanges between Musk and Trump roiled Tesla's share price, and Trump told media the Tesla founder should not "be playing that game with me," CNBC reported.
He said Musk is upset about losing the federal government's EV mandate if the budget bill becomes law.
Musk also could lose federal subsidies that support SpaceX and the Starlink global satellite Internet services provider, Trump warned.
Musk on social media dared the president to "cut it all" and said he might work to create a third political party "that actually cares about the people."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
Volex's (LON:VLX) Upcoming Dividend Will Be Larger Than Last Year's
The board of Volex plc (LON:VLX) has announced that it will be paying its dividend of $0.03 on the 5th of September, an increased payment from last year's comparable dividend. This takes the annual payment to 1.2% of the current stock price, which unfortunately is below what the industry is paying. While the dividend yield is important for income investors, it is also important to consider any large share price moves, as this will generally outweigh any gains from distributions. Investors will be pleased to see that Volex's stock price has increased by 87% in the last 3 months, which is good for shareholders and can also explain a decrease in the dividend yield. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. It would be nice for the yield to be higher, but we should also check if higher levels of dividend payment would be sustainable. Before making this announcement, Volex was easily earning enough to cover the dividend. This means that most of what the business earns is being used to help it grow. Looking forward, earnings per share is forecast to rise by 12.1% over the next year. Assuming the dividend continues along recent trends, we think the payout ratio could be 18% by next year, which is in a pretty sustainable range. View our latest analysis for Volex It is great to see that Volex has been paying a stable dividend for a number of years now, however we want to be a bit cautious about whether this will remain true through a full economic cycle. Since 2019, the annual payment back then was $0.0241, compared to the most recent full-year payment of $0.0614. This means that it has been growing its distributions at 17% per annum over that time. Volex has been growing its dividend quite rapidly, which is exciting. However, the short payment history makes us question whether this performance will persist across a full market cycle. The company's investors will be pleased to have been receiving dividend income for some time. We are encouraged to see that Volex has grown earnings per share at 21% per year over the past five years. A low payout ratio gives the company a lot of flexibility, and growing earnings also make it very easy for it to grow the dividend. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Earnings are easily covering distributions, and the company is generating plenty of cash. All of these factors considered, we think this has solid potential as a dividend stock. Investors generally tend to favour companies with a consistent, stable dividend policy as opposed to those operating an irregular one. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. You can also discover whether shareholders are aligned with insider interests by checking our visualisation of insider shareholdings and trades in Volex stock. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
BYD, XPeng, and NIO Deliveries Jump. Why Tesla Is Under Pressure.
Chinese electric-vehicle makers post strong growth ahead of the release of Tesla's second-quarter deliveries. Sign in to access your portfolio
Yahoo
an hour ago
- Yahoo
Nynomic AG's (ETR:M7U) Stock Has Seen Strong Momentum: Does That Call For Deeper Study Of Its Financial Prospects?
Most readers would already be aware that Nynomic's (ETR:M7U) stock increased significantly by 15% over the past month. As most would know, fundamentals are what usually guide market price movements over the long-term, so we decided to look at the company's key financial indicators today to determine if they have any role to play in the recent price movement. Specifically, we decided to study Nynomic's ROE in this article. ROE or return on equity is a useful tool to assess how effectively a company can generate returns on the investment it received from its shareholders. In other words, it is a profitability ratio which measures the rate of return on the capital provided by the company's shareholders. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. The formula for ROE is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Nynomic is: 3.6% = €3.7m ÷ €103m (Based on the trailing twelve months to December 2024). The 'return' is the amount earned after tax over the last twelve months. One way to conceptualize this is that for each €1 of shareholders' capital it has, the company made €0.04 in profit. View our latest analysis for Nynomic Thus far, we have learned that ROE measures how efficiently a company is generating its profits. Depending on how much of these profits the company reinvests or "retains", and how effectively it does so, we are then able to assess a company's earnings growth potential. Assuming all else is equal, companies that have both a higher return on equity and higher profit retention are usually the ones that have a higher growth rate when compared to companies that don't have the same features. On the face of it, Nynomic's ROE is not much to talk about. Yet, a closer study shows that the company's ROE is similar to the industry average of 4.2%. On the other hand, Nynomic reported a moderate 12% net income growth over the past five years. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. For example, it is possible that the company's management has made some good strategic decisions, or that the company has a low payout ratio. Next, on comparing Nynomic's net income growth with the industry, we found that the company's reported growth is similar to the industry average growth rate of 11% over the last few years. Earnings growth is a huge factor in stock valuation. The investor should try to establish if the expected growth or decline in earnings, whichever the case may be, is priced in. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. One good indicator of expected earnings growth is the P/E ratio which determines the price the market is willing to pay for a stock based on its earnings prospects. So, you may want to check if Nynomic is trading on a high P/E or a low P/E, relative to its industry. Nynomic doesn't pay any regular dividends, meaning that all of its profits are being reinvested in the business, which explains the fair bit of earnings growth the company has seen. On the whole, we do feel that Nynomic has some positive attributes. Even in spite of the low rate of return, the company has posted impressive earnings growth as a result of reinvesting heavily into its business. Having said that, looking at the current analyst estimates, we found that the company's earnings are expected to gain momentum. To know more about the company's future earnings growth forecasts take a look at this free report on analyst forecasts for the company to find out more. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
