Is the Big, Beautiful Breakup Over? Trump Says Tesla and Starlink Stay at the White House
Billionaire Elon Musk 's electric vehicle company, Tesla (TSLA), saw its stock price climb 4.6% on Monday, June 9, following a de-escalation of the verbal war with President Donald Trump. Both Musk and Trump appear to have softened their stances toward each other. While there were no direct peace talks, there was indirect support for each other's positions.
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Speaking to reporters about his close ties with Musk, Trump said yesterday, 'We had a good relationship, I wish him well, very well, actually.' When asked if he would accept a phone call from Musk, Trump responded with an uncertain voice, saying he had not thought about it but believed Musk might want to speak with him.
Tesla and Starlink Will Remain at the White House
During the ugly feud that began last Thursday and continued over the weekend, Trump stated that he would sell the Tesla Model S he purchased in March to support American-made EVs. However, as tensions eased, Trump changed his stance, announcing he would not sell the car but instead 'move it around.' Despite this, the Tesla remained parked outside the White House through the weekend and on Monday.
Following the Trump-Musk feud, reports emerged that the fight could jeopardize Musk's Starlink and SpaceX businesses. However, the President confirmed yesterday that he had no intention of removing Starlink's satellite service from the White House, stating, 'It's a good service.'
Musk Shows Support for the Trump Administration's Stance
Musk has also started showing indirect support for President Trump's stance on strict immigration enforcement, by reposting his messages on X. Yesterday, demonstrators set fire to five of Alphabet's (GOOGL) Waymo robotaxis in downtown Los Angeles, resulting from an escalated clash with the Immigration and Customs Enforcement (ICE) office. Waymo was forced to suspend all services in the area immediately.
Vice President JD Vance commented on the incident, stating that the 'president will not tolerate rioting and violence.' Musk reposted this message with a string of American flags attached, showing his support for the administration's stance. Additionally, Musk shared a post from Trump on his Truth Social account, which demanded apologies from California governor Gavin Newsom and LA mayor Karen Bass for their handling of the riots.
As Musk and Trump continue to navigate their complex relationship, only time will tell if their recent reconciliation rekindles their lost friendship or remains a temporary truce.
Is Tesla Stock a Buy, Hold, or Sell?
Analysts prefer to remain on the sidelines on Tesla stock currently, due to the ongoing issues. On TipRanks, TSLA stock has a Hold consensus rating based on 14 Buys, 12 Holds, and 10 Sell ratings. Also, the average Tesla price target of $281.77 implies 8.7% downside potential from current levels. Year-to-date, TSLA stock has lost 23.6%.
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