After the toys had all been thrown out of their respective prams, the temper tantrums of Elon Musk and Donald Trump have calmed, for now.
While the US President will continue his attempt to push his spending bill through Congress which experts say will increase the federal deficit by $3.8trn (£2.8trn) by 2034, Musk has other things on his mind – repairing his reputation and, to some extent, his business empire.
Top of his to-do list is to appease the shareholders of Tesla, his electric car business that saw its shares suffer a record-breaking single-day collapse as his war of words with the Oval Office played out before an open-mouthed global audience on Thursday night.
Shares in the Nasdaq-listed stock plunged 14 per cent as the world’s wealthiest man, and the most powerful, traded blows on the two social media platforms they each own.
Tesla saw $152bn (£113bn) wiped off its value on Thursday after falling below $290 – although its stock picked up slightly on Friday ending trading at just over $300. Musk, who remains the automotive group’s largest shareholder, sustained a personal hit to his $400bn fortune of almost $9bn.
But while that’s near enough pocket change to Musk, it’s the wider chaos he has caused his investors that will genuinely trouble him, and them.
There were already rumblings of mutiny after one of the company’s other major investors decided his connection with the Trump administration was causing too much trouble.
As sales from the company’s typically left-leaning customer base plummeted around the world, shareholder Ross Gerber – like other investors – watched in horror as anti-Musk protestors smashed and burnt Tesla showrooms in US-wide protests against Trump’s former “First Buddy”.
As the value of the company sank to around half of its December 2024 value, Gerber called for Musk to step down so the company could disassociate itself from the Trump administration.
After backing Musk’s leadership for more than a decade, Gerber dumped his stock and told Sky News: “There’s no question [Musk] has been committed to his job at the government, that’s where he’s spending his time. He is not running Tesla.
“I think Tesla needs a new CEO… the business has been neglected for too long.”
Last month the Wall Street Journal also reported that Tesla had appointed headhunters to begin a search for Musk’s replacement as chief executive.
Tesla said the report was “absolutely false” while Musk, who has committed at least another five years to the company, called the story “a discredit to journalism”.
Tesla sales plunge as EV buyers turn against Musk
Since Musk backed Trump’s campaign to return to the White House with $288m of his own cash, Tesla sales have dropped 13 per cent worldwide in the first three months of 2025, with US deals falling 9 per cent. Despite this, the marques remains the most popular EV choice in America.
In the UK, the news is even worse for Musk. Figures out this week show Tesla sales plunged 36 per cent in May, compared to the same month last year. Now, as well as Musk’s reputation being damaged by his association with Trump, the brand is also facing a great deal more competition in the UK than it is in the US.
Protesters gather at a Tesla dealership in Chicago in March (Photo: Jacek Boczarski/Anadolu via Getty)Chinese brands, in particular, offer cheaper and, in some cases, more range and better technology than Tesla is currently delivering.
According to the Society of Motor Manufacturers, the Chinese carmaker BYD’s sales in the UK jumped by 407 per cent, from 596 in May last year to 3,025 last month. BYD first overtook Tesla sales this side of the Atlantic in January.
According to the European Automobile Manufacturers Association (ACEA), Tesla sold 42.6 per cent fewer cars in Europe in March than it had the previous year.
In the first four months of 2025, Tesla’s UK market share was 1.85 per cent. At the start of 2025, sales dropped seven per cent year-on-year. In October 2024, the company’s market share dropped by over 63 per cent compared to the same month in 2023.
After the fallout between Trump and Musk, Tesla investors are keeping their thoughts close to their chests, possibly because as the pair appear to have stopped bickering one minute, another social media post appears to scupper hope of either of them behaving like the grown adults they are supposed to be.
On Friday morning, billionaire hedge fund manager Bill Ackman urged Trump and Musk to reconcile and continue working together in an effort to ease the pressure on Tesla.
Musk signalled on X that he agreed, and as rumours of a phone call rapprochement between the squabbling duo spread through the market, shares recovered some of yesterday’s losses, rising 5 per cent in pre-trading.
However, the shares experienced another early morning scare after the White House said Trump had no plans to speak with Musk on Friday.
For some, the future success of Tesla could depend on whether Trump and Musk make-up and pinky promise to never, ever break up again.
Tesla’s tax incentive problem
As well as repairing his reputation with consumers, Musk will be hoping he can dissuade the President from ending the popular $7,500 EV tax incentive by the end of 2025, which his so-called “Big Beautiful Bill” is currently seeking Senate approval to do.
“It might be a bit too hopeful to think their relationship will ever go back to what it once was, but if cooler heads prevail and the tension eases, that would definitely be a big improvement for Tesla,” said company shareholder Matthew Britzman, who is an analyst at Hargreaves Lansdown.
Tesla shares slumped to their worst ever single day performance as Donald Trump and Elon Musk attacked each other (Photo: Liu Junfeng/VCG via Getty)He added: “Let’s not forget, Tesla has its own battles, with disappointing sales numbers and brand damage weighing on sentiment in the near term.
“For now, markets are willing to look past the weakening auto business with AI and automation the real prizes. But with such a pivotal few months ahead for the autonomous strategy, investors will want to see Musk give his full attention back to Tesla.”
Musk may also have another plan to revitalise his car company’s ailing fortunes.
As The i Paper revealed last week, Musk is lobbying the UK Government to overhaul a £2bn green energy scheme to allow Tesla access to the lucrative carbon credit market.
The company has also staked a large amount of its financial success on its self-driving technology, with a series of optimistic predictions about the profitability and timings of fully automated driving. The company also plans to released its new roadster which may improve its market share.
Tesla was approached for comment.
While Tesla declined to comment, a Department for Transport spokesperson said: “Any suggestion that Tesla has gained a commercial advantage from meetings with the department is false. Officials routinely meet industry stakeholders to discuss a range of issues affecting the transport sector.”
That change, if carried out, could pave the way for a significant money spinner and boost Tesla’s woes. Musk may also be hoping for the return to the days of when Trump used to turn the White House lawn into a Tesla showroom.
One thing is certain, Musk needs something positive to go his way if Tesla is to regain its global EV crown.
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