<div id="readability-page-1"><p>Shares of <strong>Tesla</strong> <span>(TSLA<span> -4.36%</span>)</span> are falling on Tuesday, down 4.3% as of 12:23 p.m. ET. The drop comes as the <strong>S&amp;P 500</strong> and <strong>Nasdaq Composite </strong>lost 0.1% and 0.8%, respectively.</p> <p>Tesla CEO Elon Musk and President Donald Trump reignited their dormant social media conflict yesterday with Trump directly calling for the government to review the subsidies Musk's companies -- including Tesla -- receive.</p>  <h2>Trump calls for DOGE to look at Musk's companies</h2> <p>Musk took to X once again to criticize Trump's &#34;Big Beautiful Bill&#34; currently working its way through Congress. The bill is highly controversial, with the latest version expected to add $3.3 trillion to the U.S. national debt. The newest version also includes not just a repeal of clean energy subsidies included in previous versions, but a tax on certain green initiatives. </p> <p>Musk took to X to criticize the bill and the government's &#34;insane spending.&#34; Trump responded on Truth Social, saying, &#34;Elon may get more subsidy than any human being in history, by far, and without subsidies, Elon would probably have to close up shop and head back home to South Africa.&#34;</p> <div><p><img src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjM1NTIvbW9uZXltdXNrLmpwZyZ3PTcwMA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" width="700" height="466" original-src="https://imageproxy.pbkrs.com/https://g.foolcdn.com/image//query-b3A9cmVzaXplJnVybD1odHRwczovL2cuZm9vbGNkbi5jb20vZWRpdG9yaWFsL2ltYWdlcy84MjM1NTIvbW9uZXltdXNrLmpwZyZ3PTcwMA"/></p><p>Image source: Getty Images.</p> </div> <p>He went on to call for the Department of Government Efficiency (DOGE) -- which Musk recently stepped down from running -- to look into the subsidies, saying: &#34;Perhaps we should have DOGE take a good, hard, look at this? BIG MONEY TO BE SAVED!!!&#34;</p> <p>Tesla investors are clearly worried the president may follow through on the threat.</p> <h2>Tesla is not in a great position</h2> <p>Tesla is seeing its sales decline in key markets across the globe. The rollout of its revamped Model Y is not as strong as many had hoped, as it faces increasing competition from legacy makers and Chinese rivals like <strong>BYD</strong>. I think the stock is significantly overvalued with a current price-to-earnings ratio (P/E) of 180.</p>                                                                            </div>

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<p>Tesla shares fell 4.3% amid broader market declines, influenced by renewed tensions between CEO Elon Musk and former President Donald Trump. Trump criticized the subsidies Musk's companies receive, suggesting a government review. Musk countered by denouncing Trump's controversial spending bill, which could impact clean energy subsidies. Investors are concerned about potential subsidy cuts and Tesla's declining sales in key markets, compounded by competition from rivals like BYD. Analysts view Tesla's stock as overvalued, with a P/E ratio of 180.</p>

- Tesla shares fell by 4.3% amid a broader market decline, influenced by renewed tensions between CEO Elon Musk and former President Donald Trump over government subsidies.  
- Trump criticized Musk's companies and called for a review of their subsidies, linking it to a controversial bill that could increase the U.S. national debt by $3.3 trillion and impose taxes on green initiatives.  
- Concerns about Tesla's declining sales and competition, along with a high price-to-earnings ratio of 180, have left investors worried about the company's valuation.  

Why Tesla Stock Is Plummeting Today