Tesla stock rises as Trump-Musk feud cools and robotaxi launch nears

Published connected 11/06/2025 - 12:25 GMT+2•Updated 12:28

Tesla banal roseate marginally successful pre-market trading connected Wednesday aft CEO Elon Musk extended an oliva branch to US President Donald Trump pursuing their nationalist feud.

Shares were up complete 2% by astir midday CEST, astatine $332.76 (€290.98)

“I regret immoderate of my posts astir President @realDonaldTrump past week. They went excessively far,” Musk said successful a station connected X connected Wednesday.

After spending millions backing Trump’s successful statesmanlike bid, Musk heavy criticised nan Republicans’ caller taxation and spending bill, creating a rift betwixt nan 2 men.

Musk was antecedently appointed by Trump to lead DOGE, nan US’ Department of Government Efficiency. The tech billionaire based on that nan caller bill, dubbed by Trump arsenic nan “One Big Beautiful Bill Act”, would irresponsibly raise nan nationalist shortage and undermine DOGE’s work. Musk resigned from nan section successful precocious May aft saying he was “disappointed” pinch spending proposals.

In an escalation of nan conflict past week, Musk called for Trump to beryllium impeached and replaced pinch Vice President JD Vance. He besides implied that Trump was linked pinch precocious activity offender Jeffrey Epstein, an allegation nan White House denied.

As for nan president, Trump threatened to terminate authorities contracts awarded to Musk’s SpaceX firm.

On Monday, nan president past took a much conciliatory tone. Trump said he wished Musk “very well” and claimed that he would clasp Starlink net work astatine nan White House. Even so, nan US President suggested that he mightiness region his ain Tesla from White House grounds.

The worth of Tesla shares person been rocked by volatility arsenic investors way nan dramas playing retired successful Washington — and immoderate dump banal successful protestation of Musk's politics.

Both Argus Research and Baird downgraded ratings for Tesla banal connected Monday, which has seen its worth driblet by much than 19% since nan commencement of nan year.

Aside from nan Trump-Musk feud, experts noted that risks to Tesla see nan expiration of EV credits, which could dampen demand. A $7,500 taxation in installments for an EV acquisition is group to beryllium afloat eliminated by nan extremity of 2026, though restrictions will beryllium applied earlier this.

For those wishing to usage nan in installments successful 2026, they tin only bargain from manufacturers that haven’t yet sold 200,000 EVs. This would disqualify Tesla.

Other challenges see accrued title successful nan EV market, peculiarly from Chinese rivals specified arsenic BYD.

Despite these large wind clouds ahead, Musk’s enthusiasm astir robotaxis appears to beryllium inflating nan stock’s value. The CEO is presently hoping to rotation retired nan self-driving taxi work successful Austin, Texas, connected 22 June.

In a station connected his X societal media platform, Musk said nan day could alteration because Tesla is “being ace paranoid astir safety”.