Tesla shares recover after Trump-Musk spat knocks €131bn off valuation
Tesla shares made a slight recovery on Friday after a bitter war of words between Elon Musk and Donald Trump forced the company to drop around $150b (€131bn) in valuation.
Trump threatened to cut Musk's government contracts as their fractured alliance rapidly escalated into a public feud, with the US President suggesting he would use the US government to hurt his fellow billionaire financially.
Musk claimed that Trump's administration has not released all the records related to sex abuser Jeffrey Epstein because Trump is mentioned in them.
The tech entrepreneur even shared a post on social media calling for Trump's impeachment and skewered the President's signature tariffs, predicting a recession this year.
The messy blow-up between the President of the United States and the world's richest man played out on their respective social media platforms after Trump was asked during a White House meeting with Germany's new leader about Musk's criticism of his spending bill.
After Trump started criticising Musk, Tesla shares plunged more than 14%, knocking about €131bn off Tesla's market valuation. Musk lost about $20bn (€17.5bn) on his personal holding of Tesla.
However, on Friday, shares were up 5% in pre-market trading after Musk signalled on X he was open to easing tensions with Trump, agreeing with comments from hedge fund manager Bill Ackman calling for a detente.
Tesla shares doubled in the weeks after Trump was elected, gave back those gains and more during Musk's time at the Department of Government Efficiency (Doge) and then rallied after he vowed in April to focus much more on Tesla and his other companies.
Musk later offered up an especially stinging insult to a president sensitive about his standing among voters: 'Without me, Trump would have lost the election.' 'Such ingratitude,' Mr Musk said in a follow-up post.
Politicians and their donor patrons rarely see eye to eye. But the magnitude of Musk's support for Trump, spending at least $250m backing his campaign, and the scope of free rein the President gave him to slash and delve into the government with Doge is eclipsed only by the speed of their falling out.
Musk announced his support for Trump shortly after the then-candidate was nearly assassinated on stage at a rally in Butler, Pennsylvania, last July. News of Mr Musk's political action committee in support of Mr Trump's election came days later.
Musk soon became a close adviser and frequent companion, memorably leaping in the air behind Trump on stage at a rally in October.
Once Trump was elected, the tech billionaire stood behind him as he took the oath of office, flew with him on Air Force One for weekend stays at Mr Trump's Mar-a-Lago club in Palm Beach, Florida, slept in the White House's Lincoln Bedroom at the president's invitation and joined his cabinet meetings wearing a MAGA hat.
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