Tesla shares rebounded by 6.2% in Wall Street trading, following a sharp 14.3% plunge yesterday triggered by the public feud between Elon Musk and Donald Trump, which included threats to cancel federal contracts.
Once valued at $1.5 trillion as recently as January, Tesla now trades at a market capitalization of approximately $880 billion.
Tesla, the largest electric vehicle manufacturer in the US and the second-largest globally after China’s BYD, has seen a decline in sales in recent months. The drop is attributed in part to intensifying competition in the EV market and backlash against Musk’s increasingly political activities.
The dispute escalated further when Musk posted on X, alleging Trump’s ties to the disgraced billionaire sex offender Jeffrey Epstein. “Time to drop the bomb: Trump appears in the Epstein files. That’s the real reason they remain sealed. Have a nice day, Trump!” he wrote.
Earlier today, Trump voiced strong disappointment over Musk’s criticism of his administration’s proposed federal budget. Speaking at a White House press conference, the president said, “I had a great relationship with Elon. I’m not sure we can continue like this. I’m very surprised and disappointed.” He added, “Elon knew the budget better than anyone. He had no issue with it—until he realized we plan to cut EV subsidies.”