Musk Deal Gets Green Light From Washington
Tsla:
Tesla Shares Rebound Amid Trump Musk Feud Tension
In a stunning turn of events, Tesla (NASDAQ:TSLA) shares surged by over 5% in premarket trading on Friday, reversing the massive 14% slide from earlier in the week. The sudden rebound is attributed to reports that White House aides arranged a call between Tesla CEO Elon Musk and former President Donald Trump to ease tensions that had been escalating rapidly.
The feud between Musk and Trump began when the former president threatened to cancel Tesla’s government contracts, sparking widespread concerns about potential disruptions to the electric vehicle manufacturer’s operations. However, with the White House intervening, it appears that a brief phone call between the two parties has helped to diffuse the situation. During the conversation, Trump downplayed the fallout, stating that “it’s going very well” and “never done better.”
The Fallout: Investors Breathe a Sigh of Relief
The sudden shift in tone from Trump came as a welcome relief for investors who had been worried about the impact on Tesla’s business. With Musk’s other ventures, including SpaceX, xAI, Neuralink, The Boring Company, and social media platform X, watching closely, any chill in relations with Washington could have far-reaching consequences.
The situation raises important questions: what are the implications of this sudden detente, and will it be sustained? How might this affect Tesla’s contracts and regulatory scrutiny? As investors continue to monitor the situation, one thing is clear: the fate of Musk’s companies hangs precariously in the balance.
A Closer Look at the Impact on Elon Musk’s Ventures
With tensions between Musk and Trump easing, attention now turns to how this will affect the various ventures owned by the billionaire entrepreneur. SpaceX, xAI, Neuralink, The Boring Company, and X are all government-funded or reliant on favorable regulatory treatment. Any disruption in relations with Washington could have significant consequences for these businesses.
As we wait to see whether the fragile peace between Musk and Trump will hold, one thing is certain: the world of high-stakes politics and business will be watching closely. Can this unlikely truce be sustained? Only time will tell.