Elon Musk President Donald Trump recently ended a bitter public feud, signaling a notable shift in their relationship with potential implications for Tesla’s future.
Background of the Feud
The conflict ignited after Musk publicly criticized Trump’s domestic policy, labeling the president’s major tax and spending bill a “disgusting abomination.” Musk also accused Trump of ingratitude over the 2024 election, claiming Trump would not have won without his support. This sparked a sharp backlash from Trump, who dismissed Musk’s influence and threatened to cut billions in federal contracts crucial to Musk’s companies, including SpaceX and Tesla. Tesla’s stock plunged nearly 18%, wiping out tens of billions in market value amid fears of political retaliation and regulatory hurdles.
Adding fuel to the fire, Musk made a controversial claim on social media that Trump’s name appeared in undisclosed government documents related to Jeffrey Epstein, the late financier and convicted sex offender. Musk asserted that this was the real reason the Epstein files have not been released publicly. These posts were later deleted by Musk amid the escalating feud.
The Apology and Reconciliation
Following private discussions involving Trump allies such as Vice President JD Vance and White House Chief of Staff Susie Wiles, Musk reached out to Trump with a late-night call. Musk then publicly apologized on X (formerly Twitter), stating, “I regret some of my posts about President Trump last week. They went too far,” without specifying which posts he regretted.
Trump acknowledged Musk’s apology and expressed appreciation, indicating no hard feelings and a willingness to move forward. The White House, while focused on broader governance, signaled openness to reconciliation. This thaw has already positively impacted Tesla’s stock, which rebounded nearly 20% from its lows following the feud.
Impact on Tesla’s Stock and Regulatory Outlook
The reconciliation is crucial for Tesla’s near-term prospects. Tesla is preparing to launch its robotaxi service in Austin, Texas, a project heavily dependent on government regulatory approvals. The feud had cast doubt on these approvals, with analysts warning that continued hostility from Trump could delay or block Tesla’s autonomous vehicle ambitions.
By repairing ties with Trump, Musk reduces political risk and regulatory uncertainty, restoring investor confidence and stabilizing Tesla’s stock. It also diminishes the threat of government retaliation that had alarmed shareholders. The easing of tensions allows Tesla to focus on innovation and compete effectively amid growing competition, including from Chinese electric vehicle manufacturers.
Summary Table: Feud and Reconciliation Effects
| Aspect | Before Reconciliation | After Reconciliation |
| Tesla Stock | Fell nearly 18%, wiped out billions | Rebounded nearly 20% from lows |
| Regulatory Approvals | Uncertain, risk of delays or denial | Improved prospects for robotaxi launch |
| Political Risk | High, with threats of retaliation | Reduced, with thaw in relations |
| Public Statements | Harsh criticism, Epstein files claim | Public apology, deletion of inflammatory posts |
| Investor Confidence | Low due to feud and policy risks | Restored, stabilizing stock and outlook |
Key Takeaways
- Musk’s public feud with Trump included harsh criticism and an unsubstantiated claim that Trump’s name is in the unreleased Epstein files.
- Musk later apologized and deleted controversial posts as part of a reconciliation effort.
- The feud caused Tesla’s stock to drop nearly 18%, but it rebounded after Musk’s apology.
- Repairing relations reduces political and regulatory risks critical for Tesla’s upcoming projects.
- The episode shows how political dynamics can directly affect corporate fortunes.
FAQs
Q: What was Musk’s claim about Trump and the Epstein files?
- A: Musk claimed Trump’s name is in undisclosed Epstein-related documents, suggesting this is why the files remain sealed. He later deleted the posts and offered no evidence.
Q: How did Trump respond to Musk’s Epstein files claim?
- A: Trump denied involvement, called the claim baseless, and dismissed Musk’s criticisms.
Q: What triggered the Musk-Trump feud?
- A: Musk’s harsh criticism of Trump’s tax and spending bill and accusations of ingratitude over the 2024 election.
Q: How did the feud affect Tesla’s stock?
- A: Tesla’s stock dropped nearly 18% amid fears of political retaliation and regulatory hurdles.
Q: What changed after the apology?
- A: Musk’s apology and outreach led to a thaw in relations, with Tesla’s stock rebounding and regulatory outlook improving.
Elon Musk’s move from public feud to apology with Donald Trump marks a strategic recalibration. It stabilizes Tesla’s stock and regulatory path, allowing the company to advance its innovative projects with less political friction. This episode underscores the powerful influence political relationships have on business success.
