Trump Asserted That He Believes His Connection with Elon Musk Has Ended, Cautions Regarding Potential Repercussions
Updated Article:
The volatile relationship between Tesla's CEO, Elon Musk, and ex-President Donald Trump seems to have taken a turn for the worse, with consequences that might be felt on the electric vehicle giant's stock market.
In a candid chat with NBC News, Trump announced that he has no desire to chat with Musk again, hinting at the demise of their relationship. This comes after rumors suggest White House aides attempted to mend the feud with a compromise phone call.
Trump cautioned Musk, who recently toyed with the idea of launching a new political party on his social media platform X, against switching camps to support Democratic contenders backing Trump's signature budget bill, the "One Big Beautiful Bill." He warned that such a move could invite serious repercussions.
Morgan Stanley analysts had advised clients in a note that the deteriorating relationship between Musk and Trump could further hurt Tesla's sales. They pointed out that this estrangement might pose a problem by potentially alienating various political groups.
Tesla's sales have been on a downward spiral in the U.S. and other markets this year, amid political backlash against Musk's role in the Trump administration's Department of Government Efficiency. Despite regaining some ground on Friday, Tesla's stock couldn't recover its losses entirely, thanks to worries about the Musk-Trump relationship. The company, which had initially gained after Musk announced he would dial back his government work in April, left the $1 trillion market cap club following Thursday's drop.
While Tesla's shares are experiencing turbulence, some analysts remain hopeful about the company's future. For instance, they're optimistic about the upcoming launch of autonomous robotaxis, which could boost Tesla's growth.
[1] Tesla Stock Dips as Sales Drop and Buffet Sells Shares
[2] "Warren Buffet Sells Shares in Tesla as Stock Falls Nearly 30% from Highs
[3] Tesla Shares Rebound from Trump-Musk Spat
[4] Elon Musk Targets 2024 for Autonomous Tesla Robotaxis
Insights:
Tesla's stock performance in 2025 has been affected by several factors, including declining sales, brand damage concerns, and public disputes involving Elon Musk. While there are risks, the launch of autonomous robotaxis and potential growth in new markets could offer opportunities for recovery and future growth. The relationship with President Trump may have contributed to short-term brand damage, but the long-term impact will depend on Tesla's ability to execute on its strategic plans and address market competition.
- The deteriorating relationship between Tesla's CEO, Elon Musk, and former President Donald Trump might have played a part in thestock market's volatile reaction to Tesla, particularly when Musk toyed with the idea of launching a new political party.
- Morgan Stanley analysts, in a note to clients, warned that the estrangement between Musk and Trump could further hurt Tesla's sales, potentially alienating various political groups.
- The launch of autonomous robotaxis could offer a potential growth opportunity for Tesla, according to some analysts, despite the turbulence experienced by Tesla's shares in 2025 due to declining sales, brand damage concerns, and public disputes.
- Elon Musk, in a move that could have implications for the finance and political sectors, has targeted a February 2024 timeline for the launch of autonomous Tesla robotaxis, a potential game-changer in the general-news, business, entertainment, and market cap domains.
