Here’s today’s Trump vs. Musk trading and market update:
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📉 Tesla Stock Surge & Plunge
Tesla shares plunged roughly 14% Thursday after a heated public spat between Donald Trump and Elon Musk—driven by Musk's criticism of Trump's "Big Beautiful Bill" and Trump’s threats to cut subsidies or federal contracts from Musk’s companies (including Tesla and SpaceX). This meltdown erased about $150–$152 billion in Tesla’s market capitalization .
It marked Tesla's worst two-day stretch since November 2021, with broader ripple effects dragging down the S&P 500 and Nasdaq‑100 by ~0.5–0.8% .
💹 Retail Investor Shuffle
As the stock dipped, retail investors jumped in: on Thursday, individuals bought a net $201 million worth of Tesla shares, making it one of the most actively traded retail stocks that day .
🔄 Partial Rebound on Friday
Tesla regained some footing on Friday, climbing ~4–6% in pre-market and early trading—recovering some of the ground lost amidst speculation of a potential truce .
However, reconciliation remains uncertain. A White House source suggested Trump wasn’t eager to engage Musk, despite reports of a scheduled call .
🧭 Broader Market Implications
Analysts warn that Tesla's volatility poses a risk to the wider market—some speculate the feud may catalyze a general 5–10% stock market correction .
Although Tesla recovered partially, concerns linger over the political fallout and whether Trump could actually curb Musk’s ventures via federal agenda—highlighting vulnerabilities when major public companies intertwine with politics .
🗓 What Could Happen Next?
Scenario Impact
Cooling tensions? White House aides reportedly planned a call to deescalate, but Trump publicly remained dismissive . Could stabilize Tesla stock.
Further escalation? Trump signaled “serious consequences” if Musk opposed Republicans or supported Democrats—and teased banning Musk’s social platform X for security reasons . Risk of deeper losses in Musk-linked stocks.
