Tesla Stock Seesaws as Musk-Trump ‍Feud Sparks Volatility

⁤ ‍ Updated June 06, ⁤2025

Shares of⁤ Tesla (TSLA) endured a wild ride ⁤recently as a public ‍disagreement between CEO Elon⁣ Musk and former President Donald Trump grabbed headlines. The Tesla stock initially plummeted 14.26%⁤ to $284.70.However, pre-market trading indicated a 5.06% rebound to $299.12 amid reports of potential reconciliation efforts. This stock volatility underscores how ⁤closely Musk’s political relationships are tied to Tesla’s valuation.

The feud began when Trump criticized Musk over a Republican spending bill. He claimed Musk was aware of controversial provisions, including electric vehicle mandate rollbacks. Musk fired back, calling Trump’s claims “false” ⁢and escalating the situation by suggesting⁢ Trump’s name ⁢appeared in unsealed Jeffrey Epstein files.

The public spat sent Tesla shares tumbling, erasing approximately $150 billion from the company’s market value ⁤in a single day.the company’s market capitalization fell to $917.007 billion,with key metrics showing ⁢a PE ratio of 163.62 and year-to-date‍ returns at -29.50%.

“We’re like four or five tweets away from national secrets.”

Hedge fund⁣ manager Bill Ackman publicly urged peace between the two⁤ figures.He⁤ posted on X,formerly Twitter,”I ⁣support @realDonaldTrump‍ and @elonmusk and they should make peace for the benefit of our great country.” Musk responded, “You’re not wrong.”

What’s next

White House aides are reportedly working to de-escalate the tensions, with plans to schedule a call ⁢with Musk to mediate a resolution. Investors are watching closely to see if a lasting truce can be reached, potentially stabilizing Tesla’s stock price.