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Tesla stocks have soared nearly 50% since the firm faced a high-profile disagreement between CEO Elon Musk and US President Donald Trump in June.
On June 5, 2025, the dispute caused Tesla shares to plunge by 14% in a single day, erasing $150 billion from its market capitalization. The sell-off pushed shares to an intraday minimum of $284.70 amid concerns that Musk’s political clash with Trump could harm the company’s growth outlook.
Contrarily, the incident marked the commencement of a three-month upswing. By September 16, Tesla concluded at $421.62, indicating a 48% increase from the June low. For perspective, a $1,000 investment at the June 5 low would now approximate $1,481.
Insider assurance: Musk’s $1 billion open-market acquisition of Tesla shares in mid-September was crucial. It was his first such action since 2020, a sign that comforted investors and propelled the rally.
Operational performance: Tesla’s Q2 outcomes revealed 410,000 vehicles manufactured and 384,000 delivered, alongside a record 9.6 GWh of energy storage implemented. Analysts noted that these numbers reflected sturdiness across Tesla’s energy sector, even as EV demand eased.
Change in narrative: Throughout July and August, Tesla advanced on its full self-driving (FSD) and robotaxi agenda. Limited launches expanded beyond Austin, with activities reported in Las Vegas, strengthening the optimistic outlook for Tesla’s software and autonomy “optionalities.”
Markets initially accounted for political risks within hours following the Musk–Trump conflict, fearing regulatory backlash or voided contracts. However, within a day, the anxiety dissipated. Shares commenced recovery on June 6, closing around $295 and setting the foundation for the summer surge.
By mid-September, the political aftermath had been eclipsed by operational results and Musk’s expression of confidence through his own investment.
Currently, the scoreboard indicates Musk has navigated the political turbulence. As one analyst remarked: “The tape reveals what is significant. Execution is triumphing over theatrics.”
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