Tesla stock has plunged below $300 apiece. The reason? A renewed clash between US President Donald Trump and Tesla CEO Elon Musk. The two parties have recently exchanged threats, reigniting old tensions. So, sparks have started flying once again. As a result, their conflict has entered a new phase, impacting Tesla’s stock price.

The other day, Tesla shares dropped below $300, losing nearly 6% in just one day. On June 30, they closed at $317 per share. Just a week ago, the stock was trading above $340.

Elon Musk, who once became a staunch supporter of Trump and even served as the head of the Department of Government Efficiency (DOGE), harshly criticized his boss’s latest tax bill, a piece of legislation the President has dubbed the One Big Beautiful Bill. According to Musk, the bill pushes America toward "debt slavery" by raising the national debt ceiling.

Musk recently announced that he is ready to launch a new political party as soon as the controversial bill is passed. In response, Trump took to his social media platform Truth Social, telling the Tesla CEO to "go back to South Africa," and accusing him of setting a record for receiving government subsidies.

Reportedly, subsidies have become the main point of contention in this new conflict. Musk had pushed for the continuation of tax incentives for electric vehicles, especially for Tesla, as well as for renewable energy subsidies. However, the president dismissed these requests. In response, Elon Musk — already hit hard by sluggish EV sales — began openly criticizing the legislation.