Tesla Shares Rebound Slightly After $150 Billion Rout as Musk-Trump Rift Seems to Ease

Elon Musk’s electric vehicle giant Tesla recovered some of the $150 billion in market value it lost on June 5, after a public spat between its CEO and former ally, US President Donald Trump. Tesla shares had dropped over 14% on the Nasdaq that day.

However, in early trade on Friday, shares rose as much as 5% amid reports suggesting Musk and Trump might be planning a call. As of 8:03 PM IST, Tesla shares were up 4.35% at $297.02.

Earlier in the day, Politico reported that the two were expected to speak, though a White House official later denied any such call. CNN later quoted Trump telling reporters on a call that he’s “not even thinking about” Elon Musk and that he wouldn’t be speaking with him “for a while.”

Additionally, The Wall Street Journal reported that President Trump is considering selling or giving away the Tesla car he had purchased to show support for the company amid public backlash.

Despite the developments, Wall Street indices remained strong. As of 8:03 PM IST, the Dow Jones was up 480.74 points (1.14%) at 42,800.48, and the Nasdaq had gained 238.96 points (1.24%) to 19,537.41. Top movers included NVIDIA (+1.59% to $142.22), Apple (+1.53% to $203.71), Palantir (+4.16% to $124.90), and Amazon (+1.88% to $211.82).

Spat Over the ‘One Big Beautiful Bill’

The rift began with Musk criticising Trump’s sweeping tax and domestic policy bill knows as the ‘One Big Beautiful Bill', which the Congressional Budget Office estimates will add $2.4 trillion to the US deficit over the next decade. GOP leaders aim to pass the bill by July 4. The proposal also includes a phaseout of the popular $7,500 EV tax incentive by the end of 2025.

Between June 3 and 5, Musk launched a sustained campaign on X (formerly Twitter), calling the bill a “massive, outrageous, pork-filled” and “disgusting abomination.” He said it would undo cost-saving efforts led by the Department of Government Efficiency (DOGE), which he headed, and raise the US deficit to $2.5 trillion.

Musk disputed Trump’s claim that he had reviewed the bill, insisted he had not seen it even once, and proposed a “slim” version focused on cutting EV and solar incentives.

Their disagreement escalated after Trump told reporters he was “very disappointed” in Musk, marking the end of what had been a warm relationship. Musk responded by reposting old Trump criticisms of government spending, even claiming that Trump would have lost the election without his support.

Musk went on to urge lawmakers to retain the proposed clean energy cuts while reducing other expenditures. He also started a poll asking whether the US needs a new political party, and mocked shifts in tone from leaders like House Speaker Mike Johnson and Senator John Thune.

Trump reportedly responded by suggesting cuts to federal contracts with Musk’s companies, including SpaceX. Later, Musk appeared open to easing tensions, endorsing comments from hedge fund manager Bill Ackman calling for a detente.