Tesla shares have recovered some of the losses caused by the intense tensions between billionaire Elon Musk and US President Donald Trump, although a confrontation on Friday, June 6, appears unlikely, as a White House official said the president is not interested in talking to his former ally, Reuters reported.
The stock (TSLA.O) rose nearly 4%, wiping $152 billion off its market value, following a sharp decline in the previous session due to a public war of words between Trump and Musk over the tax and spending bill.
Earlier, a Politico report said that the world’s most powerful man, Trump, and the world’s richest man, Musk, could talk later in the day. However, Tesla owner Musk indicated on “X” (formerly known as Twitter) that he was ready to ease tensions with Trump, agreeing with calls from users of the social media platform for a pause.
But Trump told CNN on Friday that he wasn’t thinking about Elon and added that the billionaire “has a problem.”
Tensions escalated on Thursday, June 5, after Musk intensified his criticism of President Trump’s sweeping tax bill, Reuters reported, which originally proposed ending the popular $7,500 EV tax incentive by the end of 2025.
Also Read: Elon Musk and Donald Trump’s relationship appears to be deteriorating
In response to Musk’s criticism, Trump suggested reducing government contracts with the billionaire’s companies, including rocket maker SpaceX (which holds government contracts worth $22 billion).
Tesla shareholder Matthew Britzman said it might be a bit too optimistic to think Musk and Trump will get back to normal. He added that if tensions cool down, it would be a big improvement for Tesla.
Reuters said Musk’s public clash with Trump could create multiple obstacles for Tesla and other sprawling business empires.
The National Highway and Traffic Safety Administration (NHTSA), under the US Department of Transportation (DOT), regulates vehicle design and safety standards and will have a major role in whether Tesla can mass-produce robotaxis (autonomous cars) without pedals and a steering wheel. The DOT and NHTSA will review safety features.
Tesla’s stock price has fallen 26.9% this year after falling 14% on Thursday, a direct result of the crash. Still, the stock trades at 120 times expected earnings, far higher than other automakers and even tech giants like computer manufacturing corporation Nvidia.
Reuters’s reporting contributed to this article.
