Tesla Stock Surges 5% on Trump-Musk Phone Call Hopes

On June 5, local time, a public dispute between U.S. President Donald Trump and entrepreneur Elon Musk drew significant attention. During an interview, Trump displayed a dismissive attitude when asked about the strained relationship with Musk. He responded, "Oh, it's fine," and stated that the situation was "going very well, better than ever."

White House aides have been working to persuade Trump to tone down his public criticism of Musk to prevent further escalation. Plans were in place to arrange a phone call between Trump and Musk on June 6 to facilitate a resolution. A White House insider revealed that aides advised Trump to focus on the tax reform bill, dubbed the "Big and Beautiful" legislation, and ensure its passage in the Senate rather than engaging in conflict with Musk.

Meanwhile, Musk showed signs of softening his tone amid the dispute with Trump, agreeing with social media posts calling for peace between the two. The origins of the public feud between Musk and Trump can be traced back to May 22, when the U.S. House of Representatives passed a tax reform bill. This bill sparked a series of heated exchanges between the two on social media.

The news of a potential phone call between Trump and Musk had a notable impact on Tesla's stock price, which surged by more than 5% in overnight trading. The stock continued to rise in pre-market trading on June 6, with reports indicating that White House aides had arranged for Trump and Musk to speak on the phone to defuse tensions. Trump, during a brief phone interview, reiterated that the situation was "going very well."

The potential phone call between Trump and Musk was seen as a move to mitigate the escalating conflict, which had led to a significant drop in Tesla's stock price earlier in the week. The stock had fallen by 14% in the previous two days, resulting in a market capitalization loss of approximately $190 billion. The news of the potential phone call provided a boost to Tesla's stock, which rebounded by nearly 5% in pre-market trading on June 6.