White House aides scheduled a phone call for Friday between President Donald Trump and billionaire Elon Musk in an attempt to de-escalate the sharp public feud between them, Politico reported on Thursday.
It seems that this news had a positive effect on Tesla shares (NASDAQ:TSLA), which fell more than 14% on Thursday as the conflict escalated. Data from 24-hour trading on Robinhood (NASDAQ:HOOD) showed that Tesla shares rose 5% to $298.64 after the Politico report was published.
Politico reported that Trump displayed an 'air of indifference' regarding the conflict with Musk during a brief phone interview with the publication. Separately, it was reported that White House aides arranged a call between them, scheduled for Friday, after attempts to soften Trump's public criticism of Musk.
The growing feud between Musk and Trump intensified on Thursday as both exchanged personal attacks on social media. The conflict appears to have been provoked by Musk's repeated sharp criticism of a major tax cut and spending bill supported by Trump.
The Trump administration defended the bill, which is steadily advancing through Congress, while the U.S. president threatened to cut government contracts awarded to Musk's companies, particularly SpaceX.
Musk responded by pointing out connections between Trump and the disgraced late financier Jeffrey Epstein.
The conflict led to a loss of about $150 billion in Tesla's market capitalization within hours on Thursday, creating additional pressure on the electric vehicle manufacturer's stock. Tesla's shares are now trading down about 25% since the beginning of 2025.
While Tesla initially benefited from Musk's growing influence in the White House, the rift between Musk and Trump threatens to reverse this trend, especially if Trump directs more political actions against Musk and the electric vehicle manufacturer.