Tesla Stock Increases Following Reports from Politico
White House aides have scheduled a call on Friday between President Donald Trump and billionaire Elon Musk in an attempt to de-escalate a bitter, public feud between the two, Politico reported on Thursday. The report appeared to have boosted Tesla shares, which slumped over 14 percent on Thursday as the feud worsened. 24-hour trading data on Robinhood showed Tesla trading up 5 percent at $298.64 after the Politico report.
Politico said Trump had projected an “air on nonchalance” over the Musk feud during a brief telephone interview with the outlet."
“Oh it’s okay... It’s going very well, never done better," Trump told Politico.
Separately, White House aides had organized a call between the two, scheduled for Friday, after working to temper Trump’s public criticism of Musk, Politico reported.
An escalating rivalry between Musk and Trump erupted on Thursday, as the two launched personal insults at one another on social media. The conflict seemed to be sparked by Musk’s ongoing, severe criticism of a significant tax reduction and spending legislation supported by Trump.
The Trump administration supported the bill, which is advancing in Congress, with the U.S. President warning to terminate government contracts given to Musk’s firms, particularly SpaceX.
Musk responded by claiming connections between Trump and the late disgraced financier Jeffery Epstein.
The conflict erased roughly $150 billion from Tesla’s market value within hours on Thursday, adding further pressure on the EV manufacturer’s shares. Tesla stocks were currently down approximately 25 percent halfway through 2025.
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Although Tesla initially gained from Musk’s rising influence in the White House, a divide between Musk and Trump risks changing this dynamic, particularly if Trump intensifies policy actions against Musk and the electric vehicle manufacturer.