In late May, Musk stepped down from DOGE and became a critic of Trump’s “big, beautiful bill,” claiming his opposition to it was because it would increase the budget deficit. Another scenario is Musk’s fear that the bill will remove electric vehicle tax credits, which would significantly hurt Tesla.

Tesla shares dropped 7% from Friday’s closing price of $323.63 to the $300.71 close on Tuesday ahead of the company’s second-quarter deliveries report.