• Tesla shares fell by nearly 6% amid escalating feud between Musk and Trump.
• Concerns over potential political retaliation against Musk's businesses are affecting investor confidence.
• Trump criticized Musk's reliance on government subsidies, sparking heightened tensions.

Tesla shares experienced a significant drop on Tuesday, declining nearly 6% as tensions between CEO Elon Musk and President Donald Trump intensified. The conflict, centered on a massive spending bill currently under Senate review, has left investors apprehensive about the political ramifications for Musk's ventures. As shares traded at $303.87, investor sentiment was shaky due to fears surrounding potential scrutiny and retaliation from the Trump Administration, according to Indiatimes, CBS News, and HuffPost.

The feud reignited on Saturday when Musk criticized the spending bill on X, claiming it would "destroy millions of jobs in America." His remarks have evolved into threats to support primary challenges against Republican lawmakers who support the bill. Musk's inflammatory comments prompted a furious response from Trump, who highlighted Musk's significant government subsidies and hinted at potential actions against his companies, including an unusual suggestion about deportation, according to Indiatimes and CBS News.

The severity of the stock decline has analysts worried about the long-term implications of the feud. Wedbush Securities analyst Dan Ives noted that the tension reflects a significant concern among investors regarding scrutiny over Musk-related government expenditures. He stated, "This BFF situation has now turned into a soap opera that remains an overhang on Tesla's stock," highlighting the nervous atmosphere among Tesla investors amid turmoil in the political arena, according to HuffPost.

The ongoing deterioration of Musk's relationship with Trump, compounded by his criticisms of the spending bill—which is expected to add at least $3.3 trillion to the national debt—has left Tesla's stock vulnerable. Musk's public statements have painted a stark picture of internal conflict, suggesting that he might even form a new political party if Congress passes the bill. This chaotic narrative has further unsettled Wall Street, as supporters question Musk's focus on Tesla's strategic goals amid the political flame-up, according to CBS News and HuffPost.