Tesla shares have surged almost 50% since the company was rocked by a very public clash between CEO Elon Musk and US President Donald Trump in June.
On June 5, 2025, the feud sent Tesla stock tumbling 14% in a single session, wiping $150 billion off its market value. The sell-off drove shares to an intraday low of $284.70 amid fears that Musk’s political fallout with Trump could dent the company’s growth prospects.
Instead, the episode marked the start of a three-month rally. By September 16, Tesla closed at $421.62, representing a 48% gain from the June nadir. For context, a $1,000 investment at the June 5 low would now be worth around $1,481.
Insider confidence: Musk’s $1 billion open-market purchase of Tesla stock in mid-September proved pivotal. It was his first such move since 2020, a signal that reassured investors and accelerated the rally.
Operational delivery: Tesla’s Q2 results confirmed 410,000 vehicles produced and 384,000 delivered, alongside a record 9.6 GWh of energy storage deployed. Analysts said the figures demonstrated resilience across Tesla’s energy division, even as EV demand softened.
Narrative shift: Through July and August, Tesla made progress on its full self-driving (FSD) and robotaxi roadmap. Limited rollouts expanded beyond Austin, with activity reported in Las Vegas, boosting the bullish case for Tesla’s software and autonomy “optionality”.
Markets initially priced in political risk within hours of the Musk–Trump spat, fearing regulatory retaliation or cancelled contracts. Yet within a day, the panic subsided. Shares began to recover on June 6, closing around $295 and establishing the baseline for the summer rally.
By mid-September, the political fallout had been overtaken by operational performance and Musk’s vote of confidence via his own wallet.
For now, the scorecard suggests Musk has weathered the political storm. As one analyst put it: “The tape tells you what matters. Execution is winning out over theater.”
