Shares in the electric vehicle maker closed down over 14% on Thursday, losing about $150 billion in market value in the largest single-day decline in value in its history. In pre-market trading on Friday they pared some of those losses, rising as much as 5% after the news that the two men were scheduled to speak. Politico
first reported the planned call.
Also read: Donald Trump-Elon Musk Battle: A timeline of the turn of eventsTrump Media and Technology Group Corp, the parent company for Trump’s Truth Social platform, ended down 8.04% to $20.12 on Thursday and was up 0.2% in pre-market trade.
Musk had bankrolled a large part of Trump’s presidential campaign and was then brought as one of the president’s most visible advisers, heading up a sweeping and controversial effort to downsize the federal workforce and slash spending.
The verbal punches erupted on Thursday after Trump criticised Musk in the Oval Office and the pair then traded barbs on their social media platforms: Trump’s Truth Social and Musk’s X.
The falling-out had begun brewing days ago when Musk, who left his role as head of the Department of Government Efficiency a week ago, denounced Trump’s sweeping tax-cut and spending bill.
The president initially stayed quiet while Musk campaigned to torpedo the bill, saying it would add too much to the nation’s $36.2 trillion in debt.
Trump broke his silence on Thursday, telling reporters he was ”very disappointed” in Musk.
”Look, Elon and I had a great relationship. I don’t know if we will anymore,” Trump said.
As Trump spoke, Musk responded on X.
”Without me, Trump would have lost the election,” wrote Musk, who spent nearly $300 million backing Trump and other Republicans in last year’s election.
In another post, Musk asserted that Trump’s signature import tariffs would push the US into a recession later this year.
”The easiest way to save money in our Budget, Billions and Billions of Dollars, is to terminate Elon’s Governmental Subsidies and Contracts,” Trump posted.
Minutes after the closing bell, Musk replied, ”Yes,” to a post on X saying Trump should be impeached, something that would be highly unlikely given Trump’s Republicans hold majorities in both chambers of Congress.
Musk’s businesses also include rocket company and government contractor SpaceX and its satellite unit Starlink.
Musk, whose space business plays a critical role in the US government’s space program, said that as a result of Trump’s threats he would begin decommissioning SpaceX’s Dragon spacecraft. Dragon is the only US spacecraft capable of sending astronauts to the International Space Station.
Late on Thursday, Musk backed off the threat.
In another sign of a possible detente to come, Musk subsequently wrote: ”You’re not wrong,” in response to billionaire investor Bill Ackman saying Trump and Musk should make peace.
Also read: ‘Proud to stand beside him’, says JD Vance amid Donald Trump-Elon Musk feud
