Tesla shares briefly pare gains on report no plans for Trump-Musk call
Tesla shares clawed back from steep losses as a war of words between CEO Elon Musk and U.S. President Donald Trump appeared to cool, easing investor worries about the likely political fallout on the electric automaker.
Shares rose as much as 5 per cent in premarket trading after Politico reported Musk and Trump were expected to speak. But the stock briefly pared gains after a White House official told Reuters there were no plans for a call on Friday.
Musk signalled on his X social media platform he was open to easing tensions with Trump, agreeing with comments from hedge fund manager Bill Ackman calling for a detente.
The spat between the world's most powerful man and its richest erased more than $150 billion from Tesla's market value on Thursday, the company's biggest drop in one session.
Short-sellers, or investors betting against the stock, pocketed nearly $4 billion from the drop, the second-biggest single-day of profit on record, according to data from Ortex.
Tensions escalated after Musk stepped up criticism of Trump's sweeping tax and spending bill, which proposes largely ending the popular $7,500 EV tax incentive by the end of 2025.
In response, Trump suggested cuts to the government's contracts with Musk's companies, including rocket maker SpaceX.
"It might be a bit too hopeful to think their relationship will ever go back to what it once was, but if cooler heads prevail and the tension eases, that would definitely be a big improvement for Tesla," said Tesla shareholder Matthew Britzman, who is an analyst at Hargreaves Lansdown.
LOFTY STOCK VALUATION
An open clash with Trump could pose multiple hurdles for Tesla and the rest of Musk's sprawling business empire.
The U.S. Transportation Department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels.
Tesla did not immediately respond to a request for comment on the call.
Tesla stock is down 29.5 per cent this year after a 14 per cent drop on Thursday. Still, the shares trade at 120 times expected earnings, a lofty multiple compared to other automakers and even tech giants such as Nvidia.
The shares have been on a turbulent ride since last July when Musk backed Trump's White House bid. They surged initially as investors bet on less regulatory pressure for robotaxis, but tumbled due to soft sales and brand fallout from Musk's political stance.
Some analysts said the rift was likely to blow over as it would be detrimental to both the president and his biggest backer.
"Those are obviously threats that are unlikely to come into fruition," said City Index analyst Fiona Cincotta. "I don't expect this to blow out into anything more serious than a war of words for a couple of days."
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Straits Times
17 minutes ago
- Straits Times
Trump says he has no plans to speak to Musk as feud persists
President Donald Trump may get rid of the red Tesla Model S that he bought in March after showcasing Mr Elon Musk's electric cars on the White House lawn. PHOTO: DOUG MILLS/NYTIMES Trump says he has no plans to speak to Musk as feud persists WASHINGTON - US President Donald Trump said on June 6 that he has no plans to speak with Mr Elon Musk, signalling the president and his former ally might not resolve their feud over a sweeping tax-cut Bill any time soon. Addressing reporters aboard Air Force One, Mr Trump said he wasn't 'thinking about' the Tesla CEO. 'I hope he does well with Tesla,' Mr Trump said. However, Mr Trump said a review of Mr Musk's extensive contracts with the federal government was in order. 'We'll take a look at everything,' the president said. 'It's a lot of money.' Mr Trump may get rid of the red Tesla Model S that he bought in March after showcasing Mr Musk's electric cars on the White House lawn, a White House official said, speaking on condition of anonymity. Earlier on June 6, Mr Trump said that Mr Elon Musk had 'lost his mind' but insisted he wanted to move on from the fiery split with his billionaire former ally. 'You mean the man who has lost his mind?' Mr Trump said in a call with ABC when asked about Mr Musk, adding that he was 'not particularly' interested in talking to the tycoon. Mr Trump later told Fox News that Mr Musk had 'lost it,' while CNN quoted the president as saying: 'I'm not even thinking about poor guy's got a problem.' Mr Musk, for his part, did not directly address Mr Trump but kept up his criticism of the massive Republican tax and spending Bill that contains much of Mr Trump's domestic agenda. On his social-media platform X, Mr Musk amplified remarks made by others that Mr Trump's 'big beautiful Bill' would hurt Republicans politically and add to the nation's US$36.2 trillion (S$46.6 trillion) debt. He replied 'exactly' to a post by another X user that said Mr Musk had criticised Congress and Mr Trump had responded by criticising Mr Musk personally. Mr Musk also declared it was time for a new political party in the United States 'to represent the 80 per cent in the middle!' People who have spoken to Mr Musk said his anger has begun to recede and they think he will want to repair his relationship with Mr Trump, according to one person who has spoken to Mr Musk's entourage. The White House statements came one day after the two men battled openly in an extraordinary display of hostilities that marked a stark end to a close alliance. Tesla stock rose on June 6, clawing back some losses from the June 5 session, when it dropped 14 per cent and lost US$150 billion in value, the largest single-day decline in the company's history. Mr Musk's high-profile allies have largely stayed silent during the feud. But one, investor James Fishback, called on Mr Musk to apologise. 'President Trump has shown grace and patience at a time when Elon's behaviour is disappointing and frankly downright disturbing,' Mr Fishback said in a statement. Mr Musk, the world's richest man, bankrolled a large part of Mr Trump's 2024 presidential campaign. Mr Trump named Mr Musk to head a controversial effort to downsize the federal workforce and slash spending. Mr Trump feted Mr Musk at the White House a week ago as he wrapped up his role as head of the Department of Government Efficiency. Mr Musk cut only about half of 1 per cent of total spending, far short of his brash plans to axe US$2 trillion from the federal budget. Since then, Mr Musk has denounced Mr Trump's tax-cut and spending Bill as a 'disgusting abomination'. His opposition is complicating efforts to pass the Bill in Congress where Republicans hold a slim majority. Mr Trump's Bill narrowly passed the House of Representatives in May and is now before the Senate, where Republicans say they will make further changes. Nonpartisan analysts say the measure would add US$2.4 trillion in debt over 10 years. House Speaker Mike Johnson said he has been texting with Mr Musk and hopes the dispute is resolved quickly. 'I don't argue with him about how to build rockets and I wish he wouldn't argue with me about how to craft legislation and pass it,' Mr Johnson said on CNBC. 'Very disappointed' Mr Trump had initially stayed quiet while Mr Musk campaigned to torpedo the Bill, but broke his silence on June 5, telling reporters he was 'very disappointed' in Mr Musk. Mr Musk, who spent nearly US$300 million in the 2024 elections, said Mr Trump would have lost without his support and suggested he should be impeached. Mr Trump suggested he would terminate government contracts with Mr Musk's businesses, which include rocket company SpaceX and its satellite unit Starlink. The billionaire then threatened to decommission SpaceX's Dragon spacecraft, the only US spacecraft capable of sending astronauts to the International Space Station. Mr Musk later backed off that threat. Mr Musk had been angered when Mr Trump over the weekend revoked his nomination of Musk ally Jared Isaacman to head the US National Aeronautics and Space Administration. Two sources with direct knowledge of the dispute said White House personnel director Sergio Gor had helped turn Mr Trump against Mr Isaacman by highlighting his past donations to Democrats. Mr Musk and Mr Gor had been at odds since the billionaire criticised Mr Gor's pace of hiring at a March Cabinet meeting, the two sources said. A White House spokesperson, Mr Steven Cheung, praised Mr Gor's efforts to staff the administration but did not address his relationship with Mr Musk. A prolonged feud could make it harder for Republicans to keep control of Congress in next year's midterm elections if Mr Musk withholds financial support or other major Silicon Valley business leaders distance themselves from Mr Trump. Mr Musk had already said he planned to curtail his political spending, and on June 3 he called for 'all politicians who betrayed the American people' to be fired in 2026. His involvement with the Trump administration has provoked widespread protests at Tesla sites, driving down sales while investors fretted that Mr Musk's attention was too divided. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Business Times
26 minutes ago
- Business Times
BYD Sealion 7 vs Tesla Model Y: Which should you buy?
[singapore] This fight was bound to happen. Once the world's single bestselling car, Tesla's Model Y has been the electric sport utility vehicle (SUV) to beat for years. So it's only natural that Chinese juggernaut BYD, now the world's leading electric vehicle (EV) maker, would come out swinging with the Sealion 7, a five-seat, battery-powered SUV designed to knock the crown clean off the Tesla's glass roof. In top Performance spec, BYD's Sealion 7 serves up 530 horsepower, all-wheel drive, and a 0 to 100 kmh time of 4.5 seconds. PHOTO: BIG FISH PUBLISHING BYD's Sealion 7 (above) is a five-seat, battery-powered SUV designed to knock the crown clean off the Tesla's glass roof. PHOTO: BIG FISH PUBLISHING On paper, it's a close fight. In top Performance spec, the Sealion 7 serves up 530 horsepower, all-wheel drive, and a 0 to 100 kmh time of 4.5 seconds. You can get similar pace from the Model Y Long Range All-Wheel Drive, which has 507 horsepower and takes 4.8 seconds to hit 100. Tesla's Model Y Long Range All-Wheel Drive has 507 horsepower and takes 4.8 seconds to hit 100. The new rear-wheel drive Juniper version sneaks under the Category A COE bar by offering just 150 horsepower. PHOTO: BIG FISH PUBLISHING But for this test, I drove the new Juniper version of the Model Y in its most popular form, the rear-wheel drive (RWD) Singapore special that sneaks under the Category A Certificate Of Entitlement (COE) bar by offering just 150 horsepower. It accounts for some 80 per cent of local Model Y sales, which reveals how smart it was of Tesla to cull a few horses. The RWD version costs S$205,977 with COE, while the Sealion 7 Performance tested here costs S$219,888 with a Category B COE. The Tesla and BYD deliver nearly identical range (466 km and 460 km, respectively), and would make it to Kuala Lumpur on a single charge. Without leaving the country, most drivers here could comfortably go a week between plugging them in. Testing the least powerful Model Y against the most powerful Sealion 7 sounds like an unfair comparison, but in our market, the BYD would be more competitive if it came in tamer Category A form, not less. A NEWSLETTER FOR YOU Friday, 2 pm Lifestyle Our picks of the latest dining, travel and leisure options to treat yourself. Sign Up Sign Up Tesla has given the Model Y a raft of changes to keep it fresh for 2025, starting with clean new looks. PHOTO: BIG FISH PUBLISHING Performance figures aside, what matters is what these cars are like to live with. Tesla has given the Model Y a raft of changes to keep it fresh for 2025, starting with clean new looks. The first Model Y's frog-like face is gone, replaced by sleeker, more angular lines and a full-width light bar at the front that gives it a faint whiff of Cybertruck. Interestingly, there's no Tesla badge on the nose anymore. Presumably, you're meant to just know. If you don't, you could always tuck behind the Model Y. The rear now sports a tidy design with Tesla lettering that's nicely illuminated by indirect lighting. The aerodynamics have improved slightly, too, with drag slipping from 0.23 Cd to 0.22 Cd, which is one reason the car's range has inched up. Next to it, the Sealion 7 looks overdesigned, with creases, curves and busy details like faux intakes and wheel arch cladding. But the panel gaps are tight and the bodywork lines up nicely, suggesting that quality is a priority at BYD. Unlike the Tesla, the Sealion 7 wears its brand's logo on its nose, but you could tell it's a BYD without it, with C-shaped LED headlights giving it a clear resemblance to the brand's latest cars. The Sealion 7's (above) cabin feels traditional in comparison to the Tesla's, with quilted leather, soft padded surfaces and a bank of actual buttons. PHOTO: BIG FISH PUBLISHING Inside, the differences are just as stark. The Sealion 7's cabin feels traditional in comparison to the Tesla's, but that's not a bad thing. There's quilted leather, soft padded surfaces and a bank of actual buttons. You get a full driver display and a head-up display that helpfully shows sat-nav directions, so you never need to take your eye off the road. Both cars have huge, 15.6-inch touchscreens, but the Sealion's is easier to use, with more intuitive menus and a better navigation system. You can rotate it into portrait mode, a typical BTD move, unless you're using Apple CarPlay, which the Tesla doesn't support at all. The Tesla Model Y's interior is, as ever, minimalist to the point of abstraction. PHOTO: BIG FISH PUBLISHING The Tesla interior is, as ever, minimalist to the point of abstraction. It's like someone took a regular car and shaved off every single extraneous detail with a scalpel. You don't even see the air-con vents, which are hidden behind a panel. The turn signal is a stalk (unlike the confusing button setup on the Model 3), and storage is thoughtfully designed, with covered compartments to keep everything looking tidy. Materials have improved slightly, and there's now ambient lighting and a new steering wheel that feels better to hold. But nearly everything still runs through that central screen. It handles drive modes, climate, media and your main driving info, all crammed into one space. There's no standalone display for a speedometer, to say nothing of a head-up display. It's clean, calming, even elegant, but if you want to see how fast you're going and look straight ahead at the same time, you're out of luck. In contrast, the Sealion 7 mixes tech with old-school convenience. There are physical toggles for the drive modes and regenerative braking levels, plus proper air-con vents that actually work. A clever shortcut lets you swipe three fingers across the screen to adjust temperature or fan speed instantly. If you're new to EVs, you'll find the BYD more familiar, and probably nicer to live with. There's more to get used to in the Tesla. That theme continues on the road. With its plush suspension, soft brake pedal and steering that's light to the point of vagueness, the BYD feels like a car tuned for comfort above all else. Yet, when you prod the accelerator it turns into a cannonball, flying down the road with an effortless whoosh, building speed rapidly and relentlessly. The Model Y, despite its modest output, feels surprisingly lively at lower speeds. Tesla's engineers clearly calibrated the torque delivery to give you a strong initial shove before things taper off, which makes city driving feel brisk. Overtaking on the highway takes commitment, but the chassis oozes class. Where the previous Model Y felt crashy and brittle, the Juniper rides with far more compliance and comfort. Despite being slower, it's the Tesla that is actually more engaging. There's more tautness to the way it turns and tracks through corners, it feels more composed, and it gives you more confidence. That said, the Sealion 7 claws back points in usability. It has a tighter turning circle, a 360-degree camera (useful in tight car parks) and noticeably stronger air-conditioning. When the weather turns infernal, as it seems to do so often these days, that alone might sway the vote, but the BYD does one better because its panoramic glass roof has a powered sunshade. The Model Y does without one, but Tesla claims its new coating rejects more heat than before. Your gently roasted scalp may disagree. The BYD (above) wins on rear seat space, with slightly more room, but the Tesla counters with fun stuff like a small screen in the back so kids can stream YouTube or Netflix. PHOTO: BIG FISH PUBLISHING Both rear benches of the BYD and Tesla recline, but the Model Y's (above) seats do so electrically. PHOTO: BIG FISH PUBLISHING The BYD wins on rear seat space, with slightly more room, but the Tesla counters with fun stuff like a small screen in the back so kids can stream YouTube or Netflix. Both rear benches recline, but the Model Y's seats do so electrically. That's useful in either car, because you can make more boot space by sitting upright, or recline for comfort when luggage isn't a priority. The Tesla's (above) boot is enormous for the car's size, with loads of underfloor storage and a front trunk that dwarfs the BYD's. PHOTO: BIG FISH PUBLISHING The BYD Sealion 7's (above) boot is smaller than the Tesla's. PHOTO: BIG FISH PUBLISHING And luggage is one area where the Tesla shines. Its boot is enormous for the car's size, with loads of underfloor storage and a front trunk that dwarfs the BYD's. Tesla's efficiency with packaging is genuinely impressive, and shows just how well they've nailed the art of arranging compact EV components to optimise space. All of which points to why the Model Y has been the benchmark EV for so long. It feels pared down and smart in how it approaches the idea of what a car should be. But it's equally clear that BYD has caught up. The Sealion 7 may not be as sleek or glamorous, but it's supremely usable. Features like the head-up display, Apple CarPlay and Android Auto compatibility, physical switches, stronger climate control system, parking camera, sunshade and greater cabin space all make daily life more pleasant than in the Tesla. It's a less daunting prospect in terms of ownership, too, with a 10-year warranty for the battery, 10 years' free servicing and a six-year mechanical warranty. For its part, Tesla guarantees the battery for eight years, and the rest of the car for four. If the Performance version seems like overkill, the single-motor Sealion 7 Premium hits a sweet spot. It's less swift but nearly as well-equipped, and is the one that makes the most sense for day-to-day life. The Model Y (left) has been the benchmark EV for so long, but it's clear that BYD has caught up. PHOTO: BIG FISH PUBLISHING Either way, this is a punch-up with a clear outcome. In overall terms the Model Y feels better to drive, but the Sealion 7 feels like it would be better to live with. BYD Sealion 7 Performance AWD Motor power/torque 530 hp/690 Nm Battery type/net capacity Lithium iron phosphate (LFP)/82.5 kWh Charging time/type Approx. 9 hours (11 kW AC), approx. 1 hour 10 to 80 per cent (150 kW DC) Range 460 km (WLTP) 0 to 100 kmh 4.5 seconds Top speed 215 kmh Efficiency 21.4 kWh/100 km Agent Vantage Automotive Price S$219,888 with COE Available Now Tesla Model Y RWD 110 Motor power/torque 150 hp/350 Nm Battery type/net capacity Lithium iron phosphate (LFP)/60 kWh (estimated) Charging time/type Approx 7.5 hours (11 kW AC), approx 25 minutes 10 to 80 per cent (175 kW DC) Range 466 km (WLTP) 0 to 100 kmh 9.6 seconds Top speed 201 kmh Efficiency 15.3 kWh/100 km Agent Tesla Singapore Price S$205,977 with COE Available Now
CNA
41 minutes ago
- CNA
US, China to hold trade talks on Jun 9 in London, Trump says
WASHINGTON: Three of President Donald Trump's top aides will face their Chinese counterparts in London on Monday (Jun 9) for talks to resolve a trade dispute between the world's two largest economies that has kept global markets on edge. US Treasury Secretary Scott Bessent, Commerce Secretary Howard Lutnick and Trade Representative Jamieson Greer will represent Washington in the talks, said Trump, who announced the talks in a post on his Truth Social platform but provided no more details. It was not immediately clear who would represent China. The Chinese embassy in Washington did not immediately respond to a request for comment. The White House did not immediately respond to a request for more details. "The meeting should go very well," Trump wrote. Trump also said on Friday that Chinese President Xi Jinping had agreed to restart the flow of rare earth minerals and magnets to the US. Asked directly by a reporter aboard Air Force One whether Xi had agreed to do so, Trump replied: "Yes, he did." He added: "We're very far advanced on the China deal. The scheduling of the meeting comes a day after Trump spoke to Chinese President Xi Jinping in a rare leader-to-leader call amid weeks of brewing trade tensions and a battle over critical minerals. Trump and Xi agreed to visit one another and asked their staffs to hold talks in the meantime. Both countries are under pressure to relieve tensions, with the global economy under pressure over Chinese control over the rare earth mineral exports of which it is the dominant producer and investors more broadly anxious about Trump's wider effort to impose tariffs on goods from most US trading partners. China, meanwhile, has seen its own supply of key US imports like chip-design software and nuclear plant parts curtailed. The countries struck a 90-day deal on May 12 in Geneva to roll back some of the triple-digit, tit-for-tat tariffs they had placed on each other since Trump's January inauguration. That preliminary deal sparked a global relief rally in stock markets, and US indexes that had been in or near bear market levels have recouped the lion's share of their losses. The S&P 500 stock index, which at its lowest point in early April was down nearly 18 percent after Trump unveiled his sweeping "Liberation Day" tariffs on goods from across the globe, is now only about 2 percent below its record high from mid-February. The final third of that rally followed the US-China truce struck in Geneva. Still, that temporary deal did not address broader concerns that strain the bilateral relationship, from the illicit fentanyl trade to the status of democratically governed Taiwan and US complaints about China's state-dominated, export-driven economic model. Since returning to the White House in January, Trump has repeatedly threatened an array of punitive measures on trading partners, only to revoke some of them at the last minute. The on-again, off-again approach has baffled world leaders and spooked business executives. Beijing sees mineral exports as a source of leverage, halting those exports could put domestic political pressure on the Republican US president if economic growth sags because companies cannot make mineral-powered products. In recent years, the United States has identified China as its top geopolitical rival and the only country in the world able to challenge the US economically and militarily.
