Tesla Shares Drop Amid Trump’s Subsidy Review Suggestion

NEW YORK, NY — Tesla‘s stock fell 6% in premarket trading on Tuesday after President Donald Trump suggested reviewing subsidies for the electric vehicle manufacturer. Trump made the comments on social media, urging the U.S. Department of Government Efficiency to examine the financial support provided to Tesla CEO Elon Musk‘s companies.

The president’s remarks came after Musk criticized Trump’s recent tax-and-spending bill, dubbing it detrimental to the nation’s fiscal health. In response, Musk tweeted, “I am literally saying CUT IT ALL. Now.” This disagreement marks another chapter in the contentious relationship between the two influential figures.

Other companies also saw notable stock changes in premarket trading. AeroVironment, a defense contractor, experienced a 7% decline after announcing plans to offer $750 million in common stock and $600 million in convertible senior notes due in 2030.

Meanwhile, Hasbro‘s shares rose 2% following an upgrade to “buy” from “neutral” at Goldman Sachs, attributed to anticipated sales growth from new Magic: The Gathering sets. Hyatt Hotels also gained 2% after an upgrade by Raymond James to “strong buy,” citing an agreement to sell its Playa-owned real estate, which alleviates investor concerns.

On the other hand, Textron saw a 2% drop due to a downgrade from Goldman Sachs, which cited losses in market share in its business jet segment. Sweetgreen shares fell 3% after TD Cowen downgraded its rating, reflecting concerns over competition and slowing sales in urban locations.

Despite these fluctuations, Joby Aviation‘s shares rose 1% after delivering its first flying taxi to the United Arab Emirates, ahead of a planned 2026 service launch. Additionally, Circle Internet Group‘s stock added nearly 2% after submitting a bank charter application to the Office of the Comptroller of the Currency.

With stocks reacting to these developments, analysts remain attentive to the potential impacts of Trump’s tariff policies and Federal Reserve decisions on the market’s direction.