Tesla Just Had a Wild Week— Here Are 6 Big Things You Shouldn’t Miss

Tesla’s stock plummeted over 14% on Thursday, as a long-standing tension between U.S. President Donald Trump and Tesla CEO Elon Musk erupted into a public confrontation.

What many industry insiders had discreetly foreseen became a reality after Congress enacted the contentious “One Big Beautiful Bill” on May 22, 2025, a comprehensive new law that solidifies tax reductions, increases military spending, and imposes a 3.5% fee on international money transfers.

While the policy package may have satisfied conservatives, it deeply annoyed Musk, triggering a series of online insults and political ultimatums that have since destabilised Tesla’s market value and heightened an already tumultuous relationship.

The Trump-Musk Feud Is Shaking Tesla’s Stock

Things got messy between Elon Musk and Donald Trump fast.

Musk, once a key backer of Trump’s 2024 presidential campaign, called the president’s latest tax plan a “disgusting abomination,” particularly because it scraps electric vehicle (EV) subsidies.

In response, Trump publicly lashed out and threatened to cut off federal contracts with Tesla and SpaceX.

The market didn’t take the feud lightly. Tesla’s stock has since fallen by 14%, wiping out roughly $150 billion in market value. Investors are understandably nervous, and it’s unclear if the fallout will end anytime soon.

Tesla Could Lose Over $1.2 Billion in Subsidies

The feud isn’t just personal, it’s financial.

If the proposed legislation eliminates federal EV tax credits, Tesla stands to lose around $1.2 billion annually in consumer incentives. That’s a huge hit, especially as the company faces growing competition in the electric car space.

Musk has warned that cutting EV incentives could slow down clean energy adoption across the U.S.

The Robotaxi Rollout Is Finally Here

Despite the political chaos, Tesla is still pushing ahead with innovation.

On June 12, Tesla will launch its much-anticipated robotaxi service in Austin, Texas. The pilot program features autonomous Model Y vehicles designed to pick up and drop off passengers without human drivers.

This marks a significant milestone in Tesla’s journey toward fully autonomous ride-hailing and urban mobility.

Tesla Pulls Back from India Plans

While Tesla continues to expand globally, not every international market is in its sights.

This week, Indian government officials confirmed that Tesla is unlikely to manufacture in India anytime soon, despite prolonged negotiations. High import duties, regulatory disagreements, and Tesla’s shifting priorities may be behind the decision.

This is a setback for India’s EV ambitions and a missed opportunity for Tesla to establish a stronger footprint in South Asia.

European Sales Are Slipping

In Europe, Tesla is facing a slowdown.

While it still holds a presence in the EU’s EV market, Chinese automakers like BYD are eating into Tesla’s share. Price wars, local production advantages, and changing consumer preferences are making Europe a tougher battleground than before.

To stay competitive, Tesla may need to rethink its pricing, features, or partnerships in the region.

Cybertruck Recalls, But Innovation Rolls On

Innovation isn’t always smooth, and Tesla’s futuristic Cybertruck has hit a few bumps.

Recent recalls due to safety concerns have forced the company to pause some deliveries. Still, Musk has reiterated his commitment to solving the issues and pushing ahead with product evolution, including the upcoming Cybercab, another fully autonomous concept vehicle.

Tesla’s mission to reshape transport isn’t slowing down—but it’s being tested at every turn.