TL;DR
- The price of Tesla shares headed south following the spat between the former allies.
- Over the past few hours, though. TSLA rebounded amid rumors that Musk and Trump might sit down to resolve their differences.
The drama between the once-close friends Donald Trump and Elon Musk continues to intensify. Minutes ago, the X account, The Kobeissi Letter, revealed that the American president is supposedly contemplating ditching his Tesla.
Earlier this year, Trump bought a red Tesla Model S as a public gesture of support for Musk and his EV giant amid growing criticism and declining sales. Before making the purchase, the president praised the wealthiest man in the world and vowed to pay the full price for the vehicle.
“This man [Elon Musk] has devoted his energy and his life to doing this,” he said at the time.
Trump’s purchase in March triggered a brief uptick in the price of Tesla’s shares. However, the recent conflict between the two men (which seems to have erupted following a bill introduced by the president last month) has had a negative impact on the company’s stocks.
On June 5, as the drama between the two unfolded, TSLA dropped below $275, the lowest point witnessed in the past month. In pre-market trading today, and once the market opened, though, the price rebounded to around $296, following reports that the tension might ease and expectations that Trump and Musk are open to a dialogue.
While a White House official supposedly rejected the plans for a call on June 6, Tesla’s CEO seems ready to find ways to bury the hatchet.
Earlier today, Bill Ackman (CEO of Pershing Square) argued that the two men should make peace “for the benefit of our great country.” Musk replied, “You are not wrong.”
Meanwhile, the conflict has also had a negative impact on the cryptocurrency market. Bitcoin temporarily slipped under $101,000, while some of the leading altcoins suffered even more substantial losses.
Over 215,000 traders were liquidated in the past 24 hours, with the total amount of liquidations reaching almost $1 billion.
