Trump threatened to "deport" Musk, and TSL stock price along with TRUMP meme coin experienced a big dump.

The contradiction between the U.S. political arena and tech giants has once again triggered market turbulence. Former U.S. President Donald Trump publicly stated on Tuesday (July 1) that he might consider expelling South African-born billionaire Elon Musk and dispatching the Department of Efficiency (DOGE) to investigate this tech giant, to review the subsidies the government has distributed to Musk's companies. This statement immediately caused market panic, with Tesla's stock price closing overnight down over 5%, while the meme coin TRUMP related to Trump also fell by more than 8%. This dispute not only reveals the complex relationship between politics and business but also shows the significant influence it has on the market.

1. The Escalating Dispute Between Trump and Musk: Subsidies and Legislation Become the Trigger

Musk has recently fiercely criticized Trump's proposed "Beautiful Big Bill" aimed at tax cuts and spending, which has escalated their dispute once again. When asked at the White House whether he would consider expelling Musk, Trump stated, "I don't know. We have to look at the situation." This implies that Trump has not immediately ruled out this possibility. Although Musk was born in South Africa and became a U.S. citizen in 2002, he would typically need to be convicted of a crime to be deported; however, Trump's remarks have still drawn widespread attention.

Trump further stated: "We may have to let the government efficiency department (DOGE) go find Elon Musk. Do you know what DOGE is? DOGE is that monster, it might have to go back and eat Elon." He strongly criticized Musk for attacking the "beautiful infrastructure bill," calling it "completely insane" and "political suicide." Trump believes that Musk's dissatisfaction stems from the bill's cancellation of subsidies for new energy vehicles. He threatened: "He (Musk) is losing electric vehicle subsidies. He is unhappy about many things, but you know, he might be losing more than just those, I can tell you right now that Elon may be losing much more than that."

Trump posted on Truth Social saying: "The subsidies Elon Musk has received may be more than anyone in history, and without those subsidies, he would likely have to close up shop and go back to his home in South Africa. If rocket launches, satellite production, and electric vehicle production were to stop, our country could save a fortune. Maybe we should have the government efficiency department take a good look at this? It could save a lot of money!"

(Source: Truth Social)

2. Musk expresses dissatisfaction with the 'Beautiful Act' bill

Musk once attended a campaign event with Trump in 2024, but he recently publicly criticized the tax and spending bill being pushed by Congress. Before the Senate vote on Tuesday, Musk expressed his dissatisfaction with the massive spending bill on social media, which triggered Trump's anger.

Last Saturday, Musk wrote: "The latest Senate bill draft will destroy millions of jobs in America and cause tremendous strategic damage to our country! This is simply insane and destructive. It doles out to past industries while severely harming future industries." The bill is expected to cut government subsidies for green energy and electric vehicles and could result in the federal deficit exceeding current law levels.

On Monday, the world's richest man continued to criticize, stating that those legislators who called for spending cuts during the campaign but supported the bill "should be ashamed!" Musk said, "Even if it's the last thing I do in my life, I will make them lose the party primary next year." Musk also posted on X on Monday, stating, "It's time to form a new political party that truly cares about the people."

After Musk left his position as a special advisor to the Department of Efficiency at the end of May, he had a dispute with Trump over the bill. Musk believes that the bill will significantly increase the national debt and undermine his efforts to reduce fiscal redundancy through DOGE. In response, Trump threatened to cut Musk's government subsidies and contracts.

3. Market Reaction: TSL and TRUMP Meme Coin Experience a Big Dump

Trump's remarks immediately triggered a chain reaction in the market. According to CNBC, Tesla's stock faced pressure on Tuesday, closing down 5.34%, as former President Trump posted on social media late at night, suggesting that the federal government should consider cutting subsidies to Musk's companies. Trump stated, "I think the efficiency department will eventually investigate Musk, and if they really do, we will save a lot of money... I don't think he should play these games with me."

Apart from TSL, Musk's other ventures, including SpaceX and Starlink, also heavily rely on government policy support. This makes Trump's threats even more lethal.

At the same time, the meme coin TRUMP related to Trump has also not been spared. Today (2nd), the official meme coin of former US President Trump, TRUMP, fell by more than 8%. This shows the market's sensitivity to political uncertainty, as well as the characteristic of meme coins being influenced by celebrity statements.

(Source: Gate)

Conclusion:

The public dispute between Trump and Musk is not only a personal grudge between two highly influential figures but also reflects the significant impact of political power on the business world, especially in the technology industry that heavily relies on government policy support. The big dump of Tesla's stock price and the TRUMP meme coin once again reminds the market that when assessing investment risks, political risks and celebrity effects cannot be ignored, in addition to fundamentals and technicals. The subsequent developments of this "war of words" will undoubtedly continue to affect the market's nerves.