Tesla Stock Rebounds 5% After Trump-Musk Feud: Tesla’s stock rose 5% on Friday, June 6, 2025, recovering from a steep drop. The earlier decline followed a heated argument between Elon Musk and Donald Trump. The clash wiped out $152 billion from Tesla’s market value.
Investors watched closely as political tensions affected the stock. Analysts suggested a potential truce could stabilize shares. However, Trump later dismissed the idea of a reconciliation call. The Tesla stock rebound eased some investor concerns after a volatile week.
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Tesla Stock Rebounds 5% After Trump-Musk Feud: Insights
- Tesla’s stock surged 5% after a $152 billion loss.
- Elon Musk and Donald Trump’s feud hurt investor confidence.
- Analysts believed a truce could help Tesla stock rebound.
- Trump rejected the idea of a call with Musk.
- The stock remains down 27% for the year.
Background
Tesla’s stock faced pressure due to Musk’s criticism of Trump’s policies. The CEO called a key bill a “disgusting abomination.” Trump responded by mocking Musk’s government subsidies. This clash intensified on social media. Musk claimed that Trump owed him election support.
Trump threatened to cut Tesla’s government benefits. The public feud shocked investors, causing a massive sell-off.
On the trading floor of the New York Stock Exchange (NYSE), a futures-options trader works beneath a display showing Tesla CEO Elon Musk and U.S. President Donald Trump. The scene unfolded in New York City on May 30, 2025.
Photo Credits: REUTERS.
Main Event
Tesla’s stock plummeted 14% in one day after Musk and Trump clashed. The loss erased $152 billion from Tesla’s market cap. Musk accused Trump of owing his election success. Trump fired back, calling Musk ungrateful. Analysts hoped for a quick resolution. A Politico report suggested a truce call was planned. However, the White House denied any such discussion.
Wedbush analyst Dan Ives said the Tesla stock rebound depended on reconciliation. He called shares “oversold” due to the feud. Despite the recovery, Tesla’s stock remained down for the week. Investors ignored other news, focusing only on the political drama. The stock closed at $297.68, up 3.6% for the day.
A Tesla owned by U.S. President Donald Trump is currently parked on West Executive Avenue in Washington, D.C. The vehicle sits between the White House and the Eisenhower Executive Office Building as of June 6, 2025.
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Implications
The feud hurt Tesla’s short-term market value. Long-term investors may stay cautious. If tensions continue, government contracts could be at risk. Other EV stocks may also face uncertainty. The public dispute highlights how political conflicts can impact markets. A Tesla stock rebound may require Musk to avoid further controversies.
Conclusion
Tesla’s stock recovered slightly but remains volatile. The Musk-Trump feud shows no signs of ending, and analysts warn of more turbulence if tensions rise. Investors should watch for further developments. A stable Tesla stock rebound will need fewer political distractions. The market will react to any new statements from Musk or Trump.
