Trump & Musk: Tesla’s Rise & a Shifting Relationship
- Tesla (TSLA) shares showed signs of recovery Friday after a public disagreement between CEO Elon Musk and President Donald Trump triggered investor anxiety.
- Early trading saw Tesla shares jump as much as 5% following reports that Musk and Trump might be open to de-escalating the situation.
- Musk seemed to signal a willingness to reconcile with Trump on social media, echoing hedge fund manager Bill Ackman's call for the two to resolve their differences.
Tesla stock is rebounding after a public feud between Elon Musk and Donald Trump, which previously erased $150 billion from the company’s valuation. The tensions eased after Musk hinted at peace, seemingly agreeing with a call to resolve differences. Early trading saw Tesla stock jump as much as 5% as the market reacted to potential de-escalation. The disagreement stemmed from Musk criticizing Trump’s tax and spending plans, leading to threats of contract cuts and subsidy removals. Investors who shorted Tesla profited billions during the downturn, further illustrating the market’s volatility. News Directory 3 provides deeper insights into this dynamic relationship. Discover what’s next for Tesla as it navigates market share losses and its upcoming Robotaxi launch.
Tesla Stock Rebounds After Musk-Trump Feud Sparks $150B Wipeout
Tesla (TSLA) shares showed signs of recovery Friday after a public disagreement between CEO Elon Musk and President Donald Trump triggered investor anxiety. The Tesla stock had plunged, but secondary_keyword_1 market activity indicated a rebound as the spat appeared to cool.
Early trading saw Tesla shares jump as much as 5% following reports that Musk and Trump might be open to de-escalating the situation. However,those gains were partially erased after a White House official told Reuters that no call was scheduled.
Musk seemed to signal a willingness to reconcile with Trump on social media, echoing hedge fund manager Bill Ackman’s call for the two to resolve their differences.
The Musk-Trump clash resulted in a $150 billion loss in Tesla’s market capitalization Thursday, marking a record single-day drop for the company. Data from Ortex revealed that investors who bet against secondary_keyword_2 Tesla’s stock profited nearly $4 billion from the downturn.
The dispute began after Musk criticized Trump’s tax and spending plans, which include ending the $7,500 electric vehicle tax credit by late 2025. Trump responded by suggesting the government could cut contracts with Musk’s companies, including SpaceX.
Musk suggested that Trump’s tariffs could trigger a recession in the latter half of 2025 and alluded to trump’s alleged connection to Jeffrey Epstein. In response to Ackman’s suggestion that they reconcile, Musk said, “you’re not wrong,” which many interpreted as an attempt to de-escalate.
What’s next
While the immediate volatility may subside if the feud remains verbal, Tesla shares are not necessarily out of danger. Market share losses in europe and China, along with the upcoming Robotaxi launch in Austin, Texas, could also influence the stock’s performance.