Tesla Shares Rise Over 5% After Elon Musk Hints at Cool off Period With President Donald Trump
Elon Musk's net worth fell by almost £25.11 billion ($34 billion) in a short span after Tesla (NASDAQ:TSLA) shares tanked over 14% yesterday to wipe out £110.81 billion ($150 billion) in market value over a spiralling public clash between the richest person in the world and the US President Donald Trump, two people who worked together for months to reshape the federal government.
The rift between the two over a tax bill took an ugly turn when Trump threatened to cancel federal contracts with Musk's companies. The SpaceX owner responded with his own threats to decommission the Dragon spacecraft, which carries astronauts and cargo to and from the International Space Station. Bloomberg estimated that total revenue for SpaceX and Tesla from federal unclassified contracts was over £16.25 billion ($22 billion) over the past two decades.
'The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon's governmental subsidies and contracts,' Trump wrote on Truth Social.
While Musk has claimed that Trump's tax-cut bill could bankrupt America and trigger a recession by year-end, financial analysts forecast that the legislation would also abolish a credit of up to £5,540 ($7,500) for buyers of several Tesla models by 2025-end and lead to a £886.49 million ($1.2 billion) financial impact on the company's full-year profit. If the proposed bill is passed, the end of credits would arrive seven years ahead of schedule.
'Elon was wearing thin, I asked him to leave, I took away his EV Mandate that forced everyone to buy Electric Cars that nobody else wanted (that he knew for months I was going to do!), and he just went CRAZY!," Trump had wrote.
After a public spat where Musk even suggested Trump's impeachment and that his name is in the Epstein files, the Tesla owner hinted he is open to cooling off tensions with Trump, which lifted the EV stock by 5.4% in Friday premarket trading.
In response to an X user tweet saying that it is a shame this back and forth and that both Musk and Trump 'cool off' for a few days, Musk responded by saying it is 'good advice' and that 'we [SpaceX], won't decommission Dragon.'
Even billionaire investor Bill Ackman urged both to 'make peace for the benefit of our great country,' to which Musk said, 'you're not wrong.'
According to Politico, White House aides plan a call with Musk today to de-escalate the situation.
Tesla stock lost nearly all its gains in May on investor optimism about Musk stepping down from the White House role to focus on his business ventures.
In one of his tweets, Musk even suggested creating a new political party that would represent '80% in the middle.'
Even Mark Cuban endorsed the idea in a tweet. While Cuban and Musk have sparred on various subjects, including DEI and Trump, the billionaires appear to have found some common ground.
The Shark Tank star's view on a new political party might not come as a surprise, as he had previously highlighted his dismay with both political parties.
Disclaimer: Our digital media content is for informational purposes only and not investment advice. Please conduct your own analysis or seek professional advice before investing. Remember, investments are subject to market risks and past performance doesn't indicate future returns.
Originally published on IBTimes UK Elon musk Tesla Donald trump Trump
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