Renewed Feud Between Musk and Trump Drags Tesla (TSLA) Share Price Lower
The US Senate yesterday narrowly approved Trump’s so-called “big, beautiful budget bill.”
Elon Musk, who had previously criticised the bill for potentially adding $3.3 trillion to the national debt, warned that Republican lawmakers who supported it would face political consequences. In a post on X, Musk wrote:
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth.”
He also reiterated his intention to establish a third political force under the name “America Party.”
In response, President Trump issued sharp threats:
→ to apply federal pressure on Musk’s companies by revisiting existing subsidies and government contracts (estimated by The Washington Post at $38 billion);
→ to deport Musk back to South Africa.
The market responded immediately to this renewed escalation in the Trump–Musk conflict. Tesla (TSLA) shares fell by over 5% yesterday, forming a significant bearish gap.
Technical Analysis of TSLA Stock Chart
Eight days ago, we analysed the TSLA price chart, continuing to observe price action within the context of an ascending channel (indicated in blue). At that point:
→ In mid-June, when the initial Musk–Trump tensions surfaced, TSLA managed to hold within the channel. However, as of yesterday, the price broke below the lower boundary, casting doubt on the sustainability of the uptrend that had been in place since March–April;
→ The price breached the lower channel limit near the $315 level — a zone that previously acted as support. This suggests that $315 may now serve as a resistance level.
As a result, optimism related to the late-June launch of Tesla’s robotaxi initiative has been eclipsed by concerns that the Musk–Trump confrontation may have broader implications.
If the former allies refrain from further escalation, TSLA may consolidate into a broadening contracting triangle (its upper boundary marked in red) in the near term, ahead of Tesla’s Q2 earnings release scheduled for 29 July.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
The US Senate yesterday narrowly approved Trump’s so-called “big, beautiful budget bill.”
Elon Musk, who had previously criticised the bill for potentially adding $3.3 trillion to the national debt, warned that Republican lawmakers who supported it would face political consequences. In a post on X, Musk wrote:
“Every member of Congress who campaigned on reducing government spending and then immediately voted for the biggest debt increase in history should hang their head in shame! And they will lose their primary next year if it is the last thing I do on this Earth.”
He also reiterated his intention to establish a third political force under the name “America Party.”
In response, President Trump issued sharp threats:
→ to apply federal pressure on Musk’s companies by revisiting existing subsidies and government contracts (estimated by The Washington Post at $38 billion);
→ to deport Musk back to South Africa.
The market responded immediately to this renewed escalation in the Trump–Musk conflict. Tesla (TSLA) shares fell by over 5% yesterday, forming a significant bearish gap.
Technical Analysis of TSLA Stock Chart
Eight days ago, we analysed the TSLA price chart, continuing to observe price action within the context of an ascending channel (indicated in blue). At that point:
→ In mid-June, when the initial Musk–Trump tensions surfaced, TSLA managed to hold within the channel. However, as of yesterday, the price broke below the lower boundary, casting doubt on the sustainability of the uptrend that had been in place since March–April;
→ The price breached the lower channel limit near the $315 level — a zone that previously acted as support. This suggests that $315 may now serve as a resistance level.
As a result, optimism related to the late-June launch of Tesla’s robotaxi initiative has been eclipsed by concerns that the Musk–Trump confrontation may have broader implications.
If the former allies refrain from further escalation, TSLA may consolidate into a broadening contracting triangle (its upper boundary marked in red) in the near term, ahead of Tesla’s Q2 earnings release scheduled for 29 July.
This article represents the opinion of the Companies operating under the FXOpen brand only. It is not to be construed as an offer, solicitation, or recommendation with respect to products and services provided by the Companies operating under the FXOpen brand, nor is it to be considered financial advice.
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The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.