Tesla shares have risen 50% since Musk-Trump spits as delivery and FSD boosts confidence
Tesla shares have soared nearly 50% in a public conflict between the company’s CEO Elon Musk and U.S. President Donald Trump in June.
On June 5, 2025, the hatred caused Tesla stock to fall 14% in a meeting, removing $150 billion from its market value. Sold out stocks drive stocks at an intraday low of $284.70 as Musk’s political influence on Trump could curb the company’s growth prospects.
Instead, the episode marks the beginning of a three-month rally. By September 16, Tesla closed at $421.62, a 48% gain over Nadir in June. In the context, the $1,000 investment at the June 5 low is now worth about $1,481.
Insider Confidence: Musk’s $1 billion open market purchase of Tesla shares in mid-September proved to be key. This is his first such move since 2020, and the signal reassuring investors and accelerating the rally.
Operational Delivery: Tesla’s second-quarter results confirmed 410,000 cars produced and 384,000 delivered, as well as a record 9.6 gwh energy storage storage. Analysts say these figures show that Tesla’s DOE is resilient even if demand for EVs weakens.
Narrative shift: By July and August, Tesla has made progress on its complete autonomous driving (FSD) and Robotaxi roadmap. Limited promotion expanded Austin, covering the event in Las Vegas, thus facilitating the bullish case of Tesla’s software and autonomy “selective”.
The market was initially priced at political risk within hours after Musk-Trump spit, fearing regulatory retaliation or canceling contracts. However, within a day, the panic subsided. Stocks began recovering on June 6, closing around $295 and set a benchmark for summer rally.
By mid-September, the political consequences had been replaced by operational performance and Musk’s vote of confidence through his wallet.
Currently, the scorecard believes that Musk has survived the political storm. As one analyst said, “The tape tells you that everything matters. Execution is winning.”
