Tesla shares rose 5.1% in premarket trading on Friday (June 6), after a 14% plunge the previous day that erased $152 billion from its market capitalisation. The selloff followed a heated exchange between CEO Elon Musk and President Donald Trump, marking the latest fallout from Musk’s departure as head of the US Department of Government Efficiency (DOGE).Trump initially praised Musk’s leadership in cost-cutting initiatives but reversed course after Musk criticised Trump’s tax and spending bill, calling it a “disgusting abomination”. Trump responded, saying that while he and Musk “had a great relationship,” he wasn’t sure if that would continue.
Market Impact & Analyst Reactions
Tesla’s market cap fell below the $1 trillion benchmark, triggering investor concerns over potential regulatory shifts under Trump’s administration.CNBC global quoted Wedbush Securities analyst Dan Ives as saying that while the feud does not change Tesla’s long-term prospects, it adds uncertainty to the company’s autonomous vehicle ambitions and Trump’s regulatory framework.
Despite the premarket rebound, Tesla remains under pressure as investors assess the political and financial implications of Musk’s public clash with Trump.
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