Signs of Peace Between Musk and Trump Boost Tesla Stock
By Wafric - Business
Wafricnews | 6 june 2025
Silicon Valley, USA – Tesla shares rebounded on Friday after a dramatic fallout between tech billionaire Elon Musk and U.S. President Donald Trump showed signs of easing. The public spat, which had sent shockwaves across the global markets and wiped out over $150 billion from Tesla’s value in a single day, may now be heading toward a truce.
The rebound came after Musk, in a post on X (formerly Twitter), responded positively to a call for de-escalation made by hedge fund manager Bill Ackman. The move triggered a 5% boost in Tesla’s premarket trading.
Inside sources told U.S. media that White House aides are quietly working behind the scenes to arrange a call between both camps to ease tensions, hinting at a possible reconciliation between two of the most influential figures in global economics and politics.
The tension erupted after Musk openly criticized President Trump’s new tax and spending proposal, which would significantly reduce the $7,500 federal incentive for electric vehicles—a key benefit for Tesla buyers. Trump, in turn, hinted that the U.S. government might reconsider contracts with Musk’s companies, including aerospace giant SpaceX.
While it’s unlikely the relationship between the two men will return to its previous warmth, some analysts say any form of détente could stabilize Tesla’s position after a volatile week.
“A thaw in relations could mean fewer regulatory roadblocks and a stronger public perception for Tesla, especially as the company explores autonomous vehicles,” said Matthew Britzman, an analyst and Tesla shareholder at Hargreaves Lansdown.
Political Storm Meets Business Realities
A full-blown feud with Trump could spell serious trouble for Musk’s expansive empire, especially with the U.S. Department of Transportation holding sway over key innovations like driverless robotaxis. Tesla shares rise as investors cheer Musk-Trump peace call
Tesla shares, still down nearly 30% for the year, took a major blow this week with a 14% single-day plunge. Despite the turbulence, the company remains highly valued—trading at 120 times expected earnings, a premium far beyond traditional automakers and even tech titans like Nvidia.
Market analysts suggest the feud, while headline-grabbing, may not evolve into deeper conflict.
“This is more of a political flex than a policy threat,” said Fiona Cincotta, an analyst at City Index. “Neither party gains from letting it escalate.”
The recent volatility also gave a windfall to short sellers—investors who profit from falling stock prices—who collectively earned nearly $4 billion during Thursday’s drop, according to Ortex data.
For African observers and global stakeholders watching the electric vehicle race from afar, the Musk–Trump saga is a reminder of how political dynamics in Washington can ripple across industries and continents. Tesla’s influence isn’t limited to U.S. soil—its shifts in pricing, incentives, and production impact supply chains and clean energy agendas worldwide.
As the world leans toward green technology, the balance between political power and tech innovation remains a fragile dance—one that could either accelerate or stall progress, depending on how quickly tensions cool.
Comment
To post a comment, you have to login first
LoginNo Comments Yet...