Tesla hit with stock downgrades after fallout between Musk and Trump
Tesla was hit with a pair of downgrades on Monday, underscoring mounting concerns on Wall St about the electric vehicle maker's outlook following last week's clash between chief executive Elon Musk and US president Donald Trump.
Both Argus Research and Baird cut the stock to the equivalent of hold ratings, cementing Tesla's reputation as the least-loved megacap stock among analysts. Shares fell 1.6% in premarket trading.
The downgrades mark the latest hurdle for Tesla, shares of which are down about 27% in 2025, making it the weakest performer of the so-called Magnificent Seven stocks.
Tesla shares had rallied in the wake of Mr Trump's re-election, which Musk vigorously supported, but are down almost 40% off their peak in December.
Much of the stock's recent decline came after the blowup between Musk and Trump last week. Mr Musk subsequently suggested he was open to making amends, but the tensions are seen as a significant headwind overhanging the shares.
The first round of negotiations since the teams met a month ago is aimed at restoring confidence that both are living up to commitments made in Geneva.
During those discussions, Washington and Beijing agreed to lower crippling tariffs for 90 days to allow time to devise ways to address a trade imbalance that the Trump administration blames on an unfair playing field.
Bloomberg
Read More
Elon Musk signals he may back down in public row with Donald Trump
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Examiner
5 hours ago
- Irish Examiner
US marines deployed to LA have not yet responded to immigration protests
US marines that deployed to Los Angeles on orders from President Donald Trump have not yet been called to respond to the city's immigration protests and are there only to protect federal officials and property, a commander said. The 700 marines and another 2,000 US National Guard troops were sent to LA on Monday, escalating a military presence that local officials and governor Gavin Newsom do not want and that the police chief says makes it harder to handle the protests safely. Marine Corps Gen Eric Smith told a budget hearing on Capitol Hill that the battalion has not yet been sent to any protests. The marines were trained for crowd control but have no arrest authority and are there to protect government property and personnel, he said. Mr Trump doubled the number of Guard troops being deployed soon after the first wave of 2,000 began arriving on Sunday following days of protests driven by anger over the President's enforcement of immigration laws that critics say are breaking apart migrant families. The President of the United States just called for the arrest of a sitting Governor. This is a day I hoped I would never see in America. I don't care if you're a Democrat or a Republican this is a line we cannot cross as a nation — this is an unmistakable step toward… — Gavin Newsom (@GavinNewsom) June 9, 2025 The demonstrations continued on Monday but were far less raucous, with thousands of people peacefully attending a rally at City Hall and hundreds more protesting outside a federal complex that includes a detention centre where some immigrants are being held following workplace raids across the city. The protests in Los Angeles, a city of four million people, have largely been centred in several blocks of downtown and a few other spots. At daybreak on Tuesday, guard troops were stationed outside the detention centre, but there was no sign of US marines. Obscene slogans were directed at Mr Trump and federal law enforcement remained scrawled across several buildings. The US marines have been deployed (AP) At the Walt Disney Concert Hall, workers were busy washing away graffiti on Tuesday morning. In nearby Santa Ana, armoured vehicles blocked a road leading to federal immigration and government offices. Workers swept up plastic bottles and broken glass near buildings sprayed with graffiti. Mr Trump has described Los Angeles in dire terms that Mayor Karen Bass and Mr Newsom say are nowhere close to the truth. They say he is putting public safety at risk by adding military personnel even though police say they do not need the help. Los Angeles Police Chief Jim McDonnell said in a statement that he was confident in the police department's ability to handle large-scale demonstrations and that the Marines' arrival without coordinating with the police department would present a 'significant logistical and operational challenge'. Senior politicians reacted with dismay to Mr Trump's move (AP) Mr Newsom called the deployments reckless and 'disrespectful to our troops' in a post on the social platform X. 'This isn't about public safety,' the governor said. 'It's about stroking a dangerous President's ego.' The protests began on Friday after federal immigration authorities arrested more than 40 people across Los Angeles and continued over the weekend as crowds blocked a major road and set self-driving cars on fire. Police responded with tear gas, rubber bullets and flash-bang grenades. Demonstrations spread on Monday to other cities nationwide, including San Francisco and Santa Ana, California, as well as Dallas and Austin, Texas. Authorities in Austin appeared to use chemical irritants to disperse a crowd that gathered near the state Capitol. The Trump Administration's escalation and provocation in California inflames tensions and incites violence. Now, the President of the United States said he would arrest a sitting American governor just for disagreeing with these actions. This is a hallmark of authoritarianism… — Nancy Pelosi (@SpeakerPelosi) June 9, 2025 Texas governor Greg Abbott posted on social media that more than a dozen protesters were arrested. The Pentagon said deploying the National Guard and Marines costs 134 million dollars (£98.8 million). That figure emerged just after US defence secretary Pete Hegseth engaged in a into a testy back-and-forth about the costs during a congressional hearing. Mr Hegseth said the department has a budget increase and the money to cover the costs, and he defended Mr Trump's decision to send the troops, saying they are needed to protect federal agents doing their jobs. Meanwhile, Democratic members of California's congressional delegation on Tuesday accused the President of creating a 'manufactured crisis' with his orders to send in troops. Mr Trump came under sustained criticism (AP) Nancy Pelosi contrasted Trump's actions with his handling of the January 6 2021 insurrection at the US Capitol when law enforcement officers were beaten. 'We begged the president of the United States to send in the National Guard. He would not do it,' Ms Pelosi said. California's attorney general Rob Bonta filed a lawsuit over the use of National Guard troops following the first deployment, telling reporters that Mr Trump had 'trampled' the state's sovereignty. He sought a court order declaring Mr Trump's use of the Guard unlawful and asking for a restraining order to halt the deployment. The President said the city would have been 'completely obliterated' if he had not deployed the Guard. US officials said the marines were needed to protect federal buildings and personnel, including immigration agents. A convoy of buses with blacked-out windows and escorted by sheriff's vehicles arrived overnight at a Navy facility just south of LA. Despite their presence, there has been limited engagement so far between the Guard and protesters while local law enforcement implements crowd control.
The Irish Sun
6 hours ago
- The Irish Sun
Frantic moment CNN reporter is hauled away by cops live on air at LA protests as anchor screams ‘what's going on?!'
COPS have detained a CNN reporter live on-air as he covered the tense Los Angeles protests. Anchor Laura Coates yelled out, "What's going on?" after watching national correspondent Jason Carroll being led away with his hands behind his back. Advertisement 7 CNN national correspondent Jason Carroll was detained live on-air while covering the Los Angeles protests Credit: CNN 7 Carroll, seen in 2014, was told to put his hands behind his back and leave the area Credit: Alamy 7 Cops have clashed with protesters in the days-long protests over President Donald Trump's ICE raids Credit: AFP 7 Carroll was told that he would be arrested if he came back to the area Credit: CNN Carroll had been covering the "Jason? What's going on? I hear you. What happened Jason?" Coates said live on air. "I am being detained," said Carroll in the distance as his cameraman filmed several feet behind him. Carroll then chatted with the cops, who confirmed that he wasn't being arrested. Advertisement read more on the protests "We're letting you go, but you can't come back," said the officer before threatening to arrest Carroll if he returned to the scene. The two appeared to have a friendly interaction before Carroll was put behind a wall of cops and lost touch with Coates. Later, Carroll explained that the officers didn't put him in zip ties but did grab both of his hands and told him, "you are being detained." The reporter was stunned by the sudden change as he had been roaming the streets of Los Angeles covering the protests since that morning. Advertisement Most read in The US Sun Breaking Live Blog "It is something that I wasn't expecting simply because we have been out here all day," he said. "Normally, the officers [...] realize the press is there doing a job." Trump sends another 2k National Guard to riot-ravaged LA as chaos spreads with arrests in NYC & Texas Carroll was led away around the same time that officials told demonstrators that they had to leave or else they would be arrested. They cuffed a number of protesters and charged them with failure to disperse to finally break up Thursday's demonstration. Advertisement 7 Carroll said he was stunned by the detainment because he had been covering the protests all day with no issues Credit: CNN 7 PROTESTS RAGE ON The protests, which started over the weekend, heated up after Trump sent around 2,000 National Guard troops to help keep the peace, despite California Governor Gavin Newsom warning him to back off. Newsom claims that the peaceful protests criticizing Trump's immigration crackdown turned into a protest once the troops arrived. Advertisement Meanwhile, Trump has insisted that Los Angeles would have "burned to the ground" if he hadn't sent the soldiers, as he plans to send 700 Marines to the city. "If I didn't 'SEND IN THE TROOPS' to Los Angeles the last three nights, that once beautiful and great City would be burning to the ground right now," Trump California has filed a lawsuit against Trump, accusing him of breaking the 10th Amendment when he sent in the guard. The protests have spawned more protests across the country, and hundreds of participants have been arrested. Advertisement Trump has vowed to maintain law and order despite Los Angeles Mayor Karen Bass begging him to pause the ICE raids. "There is a real fear in Los Angeles right now. Parents, workers, grandparents, young people scared to go about their daily lives," she said. "We are a city of immigrants. Washington is attacking our people, our neighborhoods and our economy." 7 A wall of law enforcement officers stand in front of a crowd of protesters Credit: Getty Advertisement
The Journal
6 hours ago
- The Journal
World Bank sharply downgrades forecast for global economic growth
US PRESIDENT DONALD Trump's trade wars are expected to slash economic growth this year in America and around the world, the World Bank forecast. Citing 'a substantial rise in trade barriers' but without mentioning Trump by name, the 189-country lender predicted that the US economy – the world's largest – would grow half as fast (1.4%) this year as it did in 2024 (2.8%). That marks a downgrade from the 2.3% US growth it had forecast back for 2025 back in January. Advertisement The bank also lopped 0.4 percentage points off its forecast for global growth this year. It now expects the world economy to expand just 2.3% in 2025, down from 2.8% in 2024. In a forward to the latest version of the twice-yearly Global Economic Prospects report, World Bank chief economist Indermit Gill wrote that the global economy has missed its chance for the 'soft landing' – slowing enough to tame inflation without generating serious pain – it appeared headed for just six months ago. 'The world economy today is once more running into turbulence,' Gill wrote. 'Without a swift course correction, the harm to living standards could be deep.'
