Tesla Stock Swings as Elon Musk and Donald Trump Feud Escalates, White House Seeks Damage Control
Tesla’s stock price (NASDAQ: TSLA) experienced dramatic volatility as a high-profile social media dispute between CEO Elon Musk and former President Donald Trump shook investor confidence. The stock plunged 14.26% to $284.70, erasing nearly $150 billion in market value, before showing signs of recovery with a 5.06% rebound in pre-market trading.
🧵 “Just Four or Five Tweets from National Secrets”
The controversy began after Trump publicly criticized Musk, accusing him of secretly supporting provisions in a Republican spending bill—specifically those rolling back EV mandates. Musk fired back, calling the accusations “completely false,” and intensified the situation by suggesting Trump was named in sealed Jeffrey Epstein court documents.
Social media erupted. One legal analyst, Matt Margolis, summed up the situation:
“We’re like four or five tweets away from national secrets.”
That quote alone garnered over 1.5 million views on X (formerly Twitter), encapsulating the surreal atmosphere surrounding the feud.
📊 Market Fallout: Tesla’s Market Cap Drops Below $920 Billion
Tesla’s stock sell-off drove the company’s market capitalization down to $917.01 billion, reflecting the heightened investor sensitivity to political distractions. Key figures from the day’s trading:
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PE Ratio: 163.62
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Year-to-Date Return: -29.50%
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S&P 500 YTD Return: +0.98%
Despite the company’s ongoing focus on AI innovation and its robotaxi program, investors were shaken by the unpredictability surrounding Musk’s political engagements.
🕊️ Signs of a Truce: White House and Wall Street Try to De-Escalate
News of a White House-mediated reconciliation brought some relief to Tesla investors. According to POLITICO, senior aides have arranged a private call between Musk and Trump, set for Friday, in an effort to cool tensions.
Billionaire hedge fund manager Bill Ackman also stepped in, posting on X:
“I support @realDonaldTrump and @elonmusk — they should make peace for the benefit of our great country.”
Musk replied simply:
“You’re not wrong.”
💼 Political Impact: Musk’s Influence Beyond Tesla
The drama underscores how Elon Musk’s political affiliations can directly impact Tesla’s share price and investor perception. Musk has previously committed over $288 million in support of Republican causes and currently leads the newly proposed Department of Government Efficiency (DOGE) under a potential second Trump administration.
Whether a détente between the two figures can stabilize the markets remains to be seen, but the message to investors is clear: Tesla’s valuation is as sensitive to Musk’s tweets as it is to quarterly earnings.
📰 Editor’s Note:
This article was compiled using data from NASDAQ, POLITICO, and National Weather Service statements, and reviewed by an editorial team for clarity and accuracy.
