Tesla (NASDAQ:TSLA) stock experienced extreme volatility as a public feud between Elon Musk and Donald Trump captivated global attention, with shares plunging 14.26% to $284.70 before rebounding 5.06% in pre-market trading following signs of a potential détente between the two powerful figures.
“Four or Five Tweets Away from National Secrets”
The clash began when Trump criticized Musk over the Republican spending bill, claiming the tech billionaire was aware of controversial provisions, including electric vehicle mandate rollbacks.
Musk responded by calling Trump’s claims “false” and escalated dramatically by accusing Trump of being named in sealed Jeffrey Epstein files.
The public spat sent Tesla shares tumbling 14.26% to $284.70, wiping approximately $150 billion from the company’s market value in a single day. Corporate lawyer Matt Margolis captured the surreal nature of the exchange, posting on X: “We’re like four or five tweets away from national secrets” – a comment that went viral with over one and a half million views.
Tesla’s Stock Faces Extreme Volatility as CEO Fueds with the White House
Tesla’s stock volatility reflected the high stakes of the dispute between two of the world’s most powerful men. The company’s market cap fell to $917.007 billion, with key metrics showing a PE ratio of 163.62 and YTD returns now at -29.50% compared to the S&P 500’s +0.98%.
However, pre-market trading showed a 5.06% rebound to $299.12 as news emerged of potential reconciliation efforts. The stock’s extreme movements highlighted how Musk’s political relationships directly impact Tesla’s valuation, despite the company’s focus on AI and robotaxi development.
Signs of a Truce Between Musk and Trump Spark Hope
Signs of a truce appeared as White House aides worked to calm tensions, scheduling a Friday call with Musk to broker peace, according to reporting by POLITICO.
Hedge fund manager Bill Ackman intervened publicly, posting “I support @realDonaldTrump and @elonmusk and they should make peace for the benefit of our great country,” to which Musk responded, “You’re not wrong.”
The potential reconciliation provided relief to investors, given Musk’s $288 million investment in supporting Republicans and his leadership of Trump’s Department of Government Efficiency (DOGE).
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Neither the author, Tim Fries, nor this website, The Tokenist, provide financial advice. Please consult our website policy prior to making financial decisions.
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