Tesla shares rose 1% to $347.71 in premarket trading on Wednesday, even as investors weighed the implications of an escalating feud between Elon Musk and US President Donald Trump.
Just days ahead of Tesla’s much-anticipated robotaxi launch in Austin, Texas, tensions between the tech billionaire and the White House resurfaced following Musk’s condemnation of a federal spending bill championed by Trump.
While Wall Street’s broader indices edged higher—S&P 500 and Dow Jones futures were both up 0.2%—Tesla’s movement reflected both optimism for its autonomous vehicle roadmap, despite unease about political entanglements.
Musk slams Trump-backed spending bill
Musk’s latest criticism came via X, formerly known as Twitter, where he labelled the new Congressional tax and spending bill a “disgusting abomination”.
The legislation, which includes substantial public infrastructure and defense allocations, had earlier cleared Congress with support from Trump’s Republican coalition.
Musk’s post, made on Tuesday afternoon, read, “This massive, outrageous, pork-filled Congressional spending bill is a disgusting abomination. Shame on those who voted for it: you know you did wrong. You know it.”
While not directed at Trump personally, the timing and nature of the post were widely interpreted as a swipe at the administration’s fiscal approach.
Robotaxi rollout expected this month in Austin
Tesla remains on schedule to debut its robotaxi service in Austin by the end of June, following Musk’s April earnings call assurance that the autonomous ride-hailing platform was nearing launch readiness.
The project, central to Tesla’s self-driving ambitions, is also seen as a major test of consumer trust and regulatory cooperation in the US.
Investors were previously buoyed by Musk’s comment that he would be spending “less time in Washington” and more time on Tesla and other core ventures.
That remark came during the company’s first-quarter earnings call on April 22, where he reaffirmed the company’s commitment to accelerating autonomous services.
Since that call, Tesla shares have risen 45%, despite a broader year-to-date decline of 15%.
Over a 12-month horizon, however, the stock remains up 95%, highlighting volatility tied not just to business fundamentals but also Musk’s unpredictable public persona and political friction.
History of disagreements between Musk and Trump
This is not the first time tensions have flared between Musk and Trump. The pair previously disagreed on trade tariffs and climate policies, with Musk even exiting presidential advisory councils in 2017 over the US withdrawal from the Paris Agreement.
That said, public clashes with the sitting president may complicate Tesla’s operational priorities, including federal tax credits and regulatory approvals tied to the company’s EV and AI projects.
Markets watch for political ripple effects on EV stocks
Investors appear cautiously optimistic for now, with Wednesday’s early gains reflecting confidence in Tesla’s near-term goals, especially around automation and mobility innovation.
But analysts suggest that any continued antagonism between Musk and the Trump administration could have implications for Tesla’s access to federal incentives or support from regulatory bodies.
While Tesla is moving closer to commercialising full self-driving technologies, a sustained political spat might increase scrutiny of its programmes or slow policy approvals.
With robotaxi services potentially reshaping urban transport, their success depends not just on engineering but also on political will and public perception.
As June unfolds, all eyes will be on both the streets of Austin and the timelines of X, where the world’s most valuable automaker is once again at the intersection of innovation and politics.
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