President Donald Trump has taken aim at Tesla CEO Elon Musk after an explosive spat over electric vehicle mandates, as the stock value of the carmaker plummeted.

After stepping down from his position as head of the Department of Government Efficiency (DOGE), Elon Musk has criticised President Donald Trump and his "big, beautiful" spending bill.

Despite receiving a key to the White House from the President, even sporting a black eye, Musk has become the latest victim of a brutal swipe from Trump.

Speaking from the Oval Office yesterday, Trump said he had "always liked Elon", but admitted that the billionaire was upset because the government removed the EV mandate.

President Donald Trump has fired shots at Elon Musk over his disapproval of the 'Big, Beautiful Bill'

He added: "Elon is upset because we took the EV mandate, which was a lot of money for electric vehicles.

"They're having a hard time [with] the electric vehicles, and they want us to pay billions of dollars in subsidies. Elon knew this from the beginning."

The current version of the bill moving through the government would seek to end the $7,500 (£5,539) electric car credit by the end of the year.

According to analysts from JPMorgan, the loss of the EV tax credit could cost the manufacturer $1.2billion (£886million).

President Trump and the Republicans have been clear in their support for removing incentives for electric cars, despite former President Biden investing billions in cleaner technologies.

Social media posts from Musk in 2024 called on the US government to "take away the subsidies", adding that "it will only help Tesla".

However, the Tesla chief is now aiming to "KILL the BILL", urging supporters to call their Senators and Congressmen. He said the spending bill could "bankrupt America".

He also said that the spending and tax bill should keep EV and solar incentive cuts, but "ditch the MOUNTAIN of DISGUSTING PORK".

Elon Musk and President Donald Trump posed with a Tesla Cybertruck outside the White House in March GETTY

The billionaire also noted that the bill did not include any changes to subsidies for oil and gas, which he described as "very unfair".

An additional post from the President on his Truth Social account accused Musk of "wearing thin", adding that he went "CRAZY".

He said: "I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!)."

Following the Presidential spat, the stock value of Tesla plummeted, with the automaker seeing the company value drop by a staggering $153billion (£112billion).

The new version of the Tesla Model Y is expected to boost sales across the UK and EuropeTESLA

It comes as Tesla continues to deal with falling sales around the world, with new UK registrations in May falling 36 per cent year-on-year.

So far this year, Tesla has sold just over 15,000 vehicles, worth 1.76 per cent of the total market share. However, this is a 7.8 per cent drop from the same time last year.

One of the brand's biggest competitors, Chinese giant BYD, is fewer than 200 sales behind Tesla in the UK, having seen an enormous 570 per cent jump in sales compared to last year.

Tesla will be hoping to overturn the slumping sales with the impending release of the new Model Y, which is expected to hit forecourts and begin deliveries this month.

The Texas-based brand has been dealing with growing criticism over the last year, with protesters calling for drivers to boycott the brand in response to Musk's work with DOGE and President Trump.