Kristina Roberts
Tesla’s stock price started recovering after a big drop caused by a public disagreement between Elon Musk, the CEO of Tesla, and former U.S. President Donald Trump. Investors were worried that the fight between the two powerful figures could hurt Tesla’s business, but things seem to be calming down now. Reports suggested that Musk and Trump might talk soon to settle their differences, which helped Tesla’s shares rise by up to 5% in early trading. However, the gains slowed a bit after a White House official said there were no confirmed plans for a call between them on Friday.
The conflict between Musk and Trump had caused Tesla to lose a huge amount of money—around $150 billion in just one day. This was Tesla’s worst single-day drop ever. Investors who bet against Tesla, known as short-sellers, made nearly $4 billion from the fall in stock price. The tension started when Musk criticized Trump’s new tax and spending plan, which could remove the $7,500 tax credit for electric vehicles by the end of 2025. Trump responded by suggesting that the government might reduce its contracts with Musk’s companies, including SpaceX, which builds rockets for NASA.
Musk later hinted on his social media platform, X, that he was open to making peace with Trump. He agreed with a post by Bill Ackman, a well-known investor, who said both sides should try to reduce the tension. While some experts believe their relationship may never be as friendly as it once was, any sign of cooling tempers is good news for Tesla’s investors.
The fight with Trump could have created problems for Tesla and Musk’s other businesses. The U.S. government plays a big role in regulating car safety, and any bad relationship with political leaders might make it harder for Tesla to get approval for its futuristic self-driving cars. Tesla did not comment when asked about the possible phone call between Musk and Trump.
Despite the recent recovery, Tesla’s stock is still down nearly 30% this year. The company’s shares are also much more expensive compared to other car companies and even big tech firms like Nvidia. This means investors are paying a high price for Tesla’s future growth, and any negative news can cause big swings in the stock price.
The situation shows how much politics can affect big companies, especially when their leaders are as famous as Elon Musk. Since Tesla is a major player in the electric vehicle market, any changes in government policies or public disputes with leaders can have a huge impact on its business. For now, investors are hoping that the worst of the conflict is over and that Tesla can focus on selling more cars and developing new technology without further distractions.
The stock market as a whole was also affected by the Musk-Trump feud, but futures started rising again as signs of a possible truce appeared. Many people in the business world are watching closely to see what happens next, as the outcome could influence not just Tesla but also other companies in the electric vehicle and tech industries.
Tesla has faced challenges before, but this situation is unique because it involves politics and personal disagreements at the highest level. Musk is known for his bold statements and strong opinions, which sometimes lead to controversies. Trump, on the other hand, is no stranger to public feuds with business leaders. The fact that both men have such big influence means their arguments can move markets and change investor sentiment quickly.
For Tesla’s shareholders, the recent events are a reminder of how unpredictable the stock market can be. Even a successful company like Tesla is not immune to sudden drops when powerful people clash. However, the rebound in stock price shows that investors are still hopeful about Tesla’s future, especially if Musk and Trump can avoid further conflicts.
In the end, the most important thing for Tesla is to keep growing its business and delivering innovative products. The electric vehicle market is becoming more competitive, with many new companies entering the space. Tesla needs to stay ahead by improving its cars, expanding production, and maintaining good relationships with governments and regulators. If Musk can navigate these challenges wisely, Tesla could continue to be a leader in the industry for years to come.
The coming days will be crucial in determining whether the tensions between Musk and Trump fully fade away or if new disagreements emerge. Investors will be watching for any updates on their relationship, as well as Tesla’s upcoming business announcements. For now, the slight recovery in stock price is a positive sign, but the situation remains uncertain.
Tesla’s journey has always been full of ups and downs, and this latest episode is just another chapter in its story. Whether the company bounces back strongly or faces more hurdles will depend on how well it handles both business and political challenges in the future. One thing is clear—when Elon Musk and Donald Trump are involved, the world pays attention, and the stock market reacts.
As of now, the focus is on whether the two will actually speak and resolve their differences. If they do, it could bring more stability to Tesla’s stock. If not, investors may have to prepare for more volatility. Either way, Tesla remains one of the most talked-about companies in the world, and its next moves will be closely watched by everyone from car buyers to Wall Street traders.
The lesson here is that even the biggest companies can be affected by personal disputes, especially when they involve high-profile leaders. For Tesla, the key to long-term success will be balancing innovation with smart diplomacy, ensuring that political battles don’t overshadow its mission to revolutionize the auto industry.
