What To Know: The drop in Tesla shares follows Musk's vocal opposition to Trump's proposed federal spending bill, which Musk called a "disgusting abomination" on social media. Musk warned that if the bill passes, he would form a new political faction, the "America Party." In response, Trump criticized Musk's reliance on federal subsidies, implying Tesla’s survival is tightly linked to government support.

Europe Woes Continue: In addition to political headwinds, Tesla's June registration data showed sharp declines in Sweden and Denmark, where year-over-year drops exceeded 60%. Meanwhile, France saw a 10% fall and Italy a staggering 66% plunge in registrations. The company did see strength in Norway, where Model Y deliveries surged 115% from a year earlier, leading to a 54% rise in overall Tesla sales in the region, according to Reuters.

Tesla is expected to report second-quarter delivery figures later this week, which could further test investor confidence amid growing uncertainty around Musk's leadership, product competitiveness and geopolitical positioning.

TSLA Price Action: Tesla shares were down 4.99% at $301.81 at the time of writing, according to Benzinga pro.

Read Next:

• Palantir Stumbles, Solar Stocks Rally As Senate Approves Tax Bill: What’s Moving Markets Tuesday?

Image Via Shutterstock.