Tesla gains as Musk-Trump tensions ease, robotaxi set

Tesla’s stock rose 0.1% on June 11, marking its fourth straight day of gains and a weekly increase of over 10%.

The rise comes amid easing tensions between CEO Elon Musk and US President Donald Trump.

Musk expressed regret on social media, admitting his recent comments about Trump “went too far.”

The clash started when Musk criticized a Trump-backed tax and spending bill, leading to social media exchanges and threats involving Tesla’s government contracts.

Musk also announced that Tesla’s robotaxi service is tentatively set to launch in Austin, Texas, on June 22.

The first driverless trip is planned for June 28, his birthday, and will take a passenger from Tesla’s factory to their home.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ Musk-Trump relationship volatility creates billions in market swings

The recent reconciliation marks the latest chapter in a relationship that frequently oscillates between collaboration and conflict with significant financial consequences.

When the feud erupted last week, Tesla experienced its “biggest-ever market cap loss” after Trump threatened to cut government contracts with Musk’s companies 1.

This pattern mirrors previous episodes. In 2018, Musk’s controversial tweets triggered significant market reactions, demonstrating how his leadership style can create substantial volatility for Tesla shareholders 2.

The relationship dynamics highlight the growing intersection between tech leadership and politics, with CEOs increasingly acknowledging that political developments impact areas like cybersecurity and operations 3.

For Tesla investors, these fluctuations represent a unique risk factor beyond traditional business metrics, as the company’s value can shift dramatically based on the personal relationship between its CEO and political figures.

2️⃣ Tesla’s robotaxi ambitions face execution gap despite cost advantages

While Goldman Sachs analysts highlight Tesla’s potential cost advantage of $0.40 per mile versus competitors’ $1.34, market skepticism persists about the company’s ambitious timeline 4.