The U.S. Senate has narrowly passed President Trump’s “big, beautiful budget bill.”
Elon Musk, who has repeatedly criticised the measure for potentially adding $3.3 trillion to the national debt, warned that Republicans who backed it would face political fallout. On X, Musk posted:
“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’s the last thing I do on this Earth.”
Musk also reiterated plans to launch a third political movement under the name America Party.
In response, President Trump threatened:
→ to target Musk’s companies by reviewing subsidies and government contracts estimated by The Washington Post to total $38 billion;
→ to deport Musk to South Africa.
Markets reacted swiftly to the renewed clash. Tesla (TSLA) shares fell over 5% on the day, creating a notable bearish gap.
TSLA Stock Chart Technical Analysis
Just over a week ago, we analysed TSLA’s price action within an ascending channel (highlighted in blue). At that time:
→ In mid-June, when initial tensions between Musk and Trump emerged, TSLA managed to stay within this channel.
→ As of yesterday, the stock broke decisively below the channel’s lower boundary near $315—a zone that had served as support. This breakdown now suggests $315 could act as resistance.
The optimism around Tesla’s late-June robotaxi launch has been overshadowed by fears that the Musk–Trump standoff could escalate further.
If both sides avoid intensifying the dispute, TSLA may stabilise and consolidate into a broadening contracting triangle (upper boundary marked in red) in the short term, ahead of Tesla’s Q2 earnings report on 29 July.
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