Elon Musk & Tesla recap: Why the damage will take time to undo
Tesla (TSLA) stock moved to the upside in Friday's trading session in an attempt to claw back the $153 billion in market cap that was wiped out in connection to CEO Elon Musk's fallout and feud with President Trump.
Gerber Kawasaki Wealth & Investment Management CEO Ross Gerber characterized this very public spectacle as "a disaster of epic proportion for Tesla and SpaceX" in an interview with Yahoo Finance on Thursday.
Additionally, Steve Clemons, Washington Note founding editor at large, explains why the rift between Musk and Trump appears very "permanent."
Yahoo Finance Senior Reporter Allie Canal joins Market Domination Overtime with Josh Lipton and Julie Hyman to recap Tesla's sharp stock moves this week.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Well, it has, of course, been a wild 24 hours of drama between Tesla CEO Elon Musk and President Donald Trump. Tesla stock closing down more than 14% yesterday before climbing back some of those losses today. For more, we're bringing in senior reporter Ali Kanal for the Yahoo Finance investor playbook.
All right. It's been that 14% stock drop on Thursday, eliminating $150 billion from Tesla's market cap. But we did see somewhat of a rebound today, but many investors and analysts out there are still warning that the damage, both to Tesla stock and Musk's credibility, could take much longer to undo. The selloff came after Musk slammed President Trump's controversial spending plan, calling it quote "a disgusting abomination." Now, remember, these two were allies, confidants, some might say even friends. Almost a year ago now, Musk publicly endorsed Trump after the attempted assassination in Butler, Pennsylvania, appearing at rallies, pledging millions to a pro-Trump super PAC, and later joining the Trump administration as head of the Department of Government Efficiency or Dodge. Musk exited that role last month, claiming he helped cut billions in government waste. But now the billionaire is turning on the president, and investors are paying the price. Here's what we heard from some Wall Street watchers, who also happen to be Tesla shareholders.
This is a disaster. I I I've been of epic proportion, you know, for Tesla and SpaceX and you know, whether Elon wants to accept it or not, he did help Trump get elected. It is his fault that Trump is President of the United States, and this is now a showdown, and this, you know, as a shareholder, couldn't be worse.
So the closeness between these two men, um, I think, uh, is something that, uh, needed to change a little bit, right? The reality is, I think cooler heads prevail. The political noise and the, uh, the other volatility is, is more short-term in nature, at least as far as I see it.
So two very different viewpoints there on where this feud could be heading and what it might mean for Tesla stock. And as analysts start to weigh in on all this drama, we did see Morgan Stanley's Adam Jonas reiterate his outperform rating. He's also holding firm with that $410 price target on shares, saying that the real opportunity for Tesla lies well beyond EVs, pointing to long-term upside in AI, autonomy, and yes, even space. But with that tax bill still in play, which would strip away the EV tax credits Tesla has relied on, investors may need to buckle up for a lot more volatility ahead here, guys. So I don't think we're going to see the end of this saga anytime soon.
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