Tesla shares have surged virtually 50% for the reason that firm was rocked by a really public conflict between CEO Elon Musk and US President Donald Trump in June.
On June 5, 2025, the feud despatched Tesla inventory tumbling 14% in a single session, wiping $150 billion off its market worth. The sell-off drove shares to an intraday low of $284.70 amid fears that Musk’s political fallout with Trump might dent the corporate’s development prospects.
As a substitute, the episode marked the beginning of a three-month rally. By September 16, Tesla closed at $421.62, representing a 48% achieve from the June nadir. For context, a $1,000 funding on the June 5 low would now be price round $1,481.
Insider confidence: Musk’s $1 billion open-market buy of Tesla inventory in mid-September proved pivotal. It was his first such transfer since 2020, a sign that reassured traders and accelerated the rally.
Operational supply: Tesla’s Q2 outcomes confirmed 410,000 autos produced and 384,000 delivered, alongside a document 9.6 GWh of power storage deployed. Analysts mentioned the figures demonstrated resilience throughout Tesla’s power division, whilst EV demand softened.
Narrative shift: Via July and August, Tesla made progress on its full self-driving (FSD) and robotaxi roadmap. Restricted rollouts expanded past Austin, with exercise reported in Las Vegas, boosting the bullish case for Tesla’s software program and autonomy “optionality”.
Markets initially priced in political threat inside hours of the Musk–Trump spat, fearing regulatory retaliation or cancelled contracts. But inside a day, the panic subsided. Shares started to recuperate on June 6, closing round $295 and establishing the baseline for the summer time rally.
By mid-September, the political fallout had been overtaken by operational efficiency and Musk’s vote of confidence by way of his personal pockets.
For now, the scorecard suggests Musk has weathered the political storm. As one analyst put it: “The tape tells you what issues. Execution is profitable out over theater.”
