None other than Tesla’s CEO Elon Musk, has been in the thick of the dramatic blowup with U.S. President Donald Trump. Their explosive on-air argument has sent shockwaves through the stock market. Musk capped off his latest stint as boss of US Department of Government Efficiency last week. This development led to increased friction and animosity between the two main subjects of the change.
On May 30, 2025, Musk attended a press event at the White House, where he met with Trump. But behind the scenes over the last few days their relationship turned sour when Musk went public with his criticism of Trump’s “big, beautiful bill.” This wide-ranging package of tax increases and public spending cuts met with opprobrium from Musk, who called it a “disgusting abomination.” Though until recently boasting of his personal rapport with Trump, Musk now says that relationship is up in the air.
Recent reports suggest that Trump had even planned a White House outreach call with Musk to negotiate a détente, as the air grew thick with new, escalating tensions. However, Susie Wiles, Trump’s Chief of Staff, stated on Friday that there were currently “no plans” for such a call. This failure of communication and transparency, for sure, has played a role in persistent surges and tumbles in the stock market connected with Tesla.
The fallout caused Tesla shares to plunge then partially recover amid the volatility. Only a day before, the stock experienced a shocking $152 billion meltdown from increasing friction between Musk and Trump. In U.S. premarket trading on Friday, Tesla shares jumped more than 10%. Many analysts feel the stock was oversold, resulting in this increase as the news continued to unfold. Dan Ives, an analyst at Wedbush Securities, expressed that belief in an interview with CNBC. He argues that investors are bullish on the idea of a manufacturing turnaround.
The market is very much still in flux as everyone on the market side watches this closely. As the dialogue continues to unfold between these heavyweights, future ramifications for Tesla and its stock valuation may be significant.
“Either we win or China will win.” – Palantir CEO Karp