Bezos Sells Shares, Tesla Falls Amid Musk-Trump Spat

Two tech billionaires have become a focus point for markets as investors reacted to a renewal of the spat between Elon Musk and President Donald Trump, while Jeff Bezos sold Amazon shares. Tesla (TSLA) stock sold off by over 5% on Tuesday, 1 July, as President Trump opined on cutting subsidies to the EV-maker. Amazon (AMZN) shares dipped as the broader rally in tech stocks paused and Bezos sold $737 million worth of stock.

Here’s what you need to know:

TSLA vs AMZN Price Performance

Amazon's stock price pulled back on Tuesday, July 1, from a near four-month high but remains well below the record high set in February. Tesla stock is sitting near the bottom of a sideways price range between around $300 and $350, having given back as much as half of the gains made since the low in April.

*Past performance does not indicate future results 

Trump’s Truth Social Post about Elon

US President Trump posted to his own social media network, Truth, that “Without subsidies, Elon would probably have to close up shop and head back home to South Africa.” 

The threats pose a risk to Musk’s businesses, including SpaceX and Starlink, which are all in less-established industries using leading-edge technology and tend to rely on government subsidies heavily.

It’s a renewal of the spat that began last month between the Tesla-owner and US President, which saw Trump react with threats of subsidy cuts to Musk’s criticisms of the pending US tax bill. Tensions between the two had cooled after Musk offered a partial apology, but have since kicked off again, creating volatility in Tesla shares. (Source: CNBC)

Jeff Bezos Sells Shares After Wedding

Jeff Bezos is trimming his stake again, this time offloading more than 3.3 million Amazon shares in a sale worth around $736.7 million, according to a regulatory filing on Tuesday.

The sale isn’t out of the blue, though. It’s part of a pre-arranged trading plan he set up back in March, which outlines the sale of up to 25 million shares by 29 May 2026. While Bezos gave up the CEO role in 2021, he still chairs the board and continues to chip away at his holdings. Even so, he remains Amazon’s biggest individual shareholder.

This latest sale coincidentally comes just after his wedding to former American journalist Lauren Sanchez in a glitzy ceremony held in Venice, Italy.

Investors Rotate Out of Tech

Tuesday showed some early signs that investors are looking for opportunities outside of the technology sector, which has led to a comeback in US markets since April.

The Dow Jones gained 396 points, or 1%, on Tuesday as investors rotated out of tech stocks, benefiting the 30-stock index, which is composed of companies from more traditional industries. The index now sits just 1% below its record high from December 2024. In contrast, the S&P 500 slipped 0.11% and the Nasdaq fell 0.83%.

Several other major tech names weighed down the market. Nvidia (NVDA) dropped 3%, Microsoft (MSFT) declined 1.1%, and Meta (META) finished the session down 2.6%. 

Conclusion

Tesla shares fell sharply again as bulls and bears continued to battle amid renewed political tension between Elon Musk and President Trump. At the same time, Amazon dipped as Jeff Bezos sold a significant stake shortly after his wedding. Tech giants were under pressure in general on Tuesday as investors rotated into more traditional sectors, lifting the Dow Jones while the Nasdaq slipped. 

With investors on edge over political risk and profit-taking in tech, the shift in sentiment could signal broader weakness or simply a catch-up among previously underperforming market segments.

*Past performance does not indicate future results