Tesla lost more than one hundred fifty billion dollars in market value after Elon Musk and President Donald Trump traded harsh messages on social media, and that Musk has now offered a public apology which the White House has accepted.
Early Wednesday, Musk posted on X that he regretted some of his comments about the president from the prior week, saying, “I regret some of my posts about President @realDonaldTrump last week. They went too far.” He added that he reached out by phone to Trump on Monday night before sharing the apology online. White House Press Secretary Karoline Leavitt confirmed that Trump received Musk’s message and appreciated it, although the president told the New York Post that he felt “a little disappointed” by their clash.
The feud began when Musk criticized Trump’s so‑called One Big Beautiful Bill, calling it a “disgusting abomination” and suggesting it deserved impeachment. He also repeated claims that Trump had ties to Jeffrey Epstein. Trump fired back by threatening to cancel Musk’s government contracts and labeling him “crazy.” The pair’s verbal showdown prompted a sharp sell‑off in Tesla shares, which fell as much as eighteen percent in one day before trimming some losses.
Analysts at Robert W. Baird downgraded Tesla stock from Buy to Neutral, pointing to brand damage and the risk that comes when one person holds so much sway over a company’s direction. “This episode shows what can happen when his political actions move markets,” Baird analyst Ben Kallo wrote.
The financial hit for Tesla totaled over one hundred fifty billion dollars in lost market value. That figure reflects the gap between Tesla’s peak share price before the fight and its lowest point during the pullback. Many investors saw the spat as a distraction from the company’s core goals of making electric cars and expanding production.
Observers in Washington say the reconciliation effort happened behind closed doors. Vice President J. D. Vance and White House Chief of Staff Susie Wiles stepped in on Friday to help calm tensions. They talked with Musk about the fallout and urged both sides to cool off. Their work appears to have paved the way for Musk’s apology and Trump’s acceptance of it without public fanfare.
Musk has invested heavily in Trump’s political future, giving roughly three hundred million dollars to the 2024 campaign and serving briefly as head of the Department of Government Efficiency before disputes over budget priorities caused him to leave. Trump had once praised Musk for his support and called him a friend, but their bond frayed as policy disagreements mounted.
Wedbush Securities analyst Dan Ives noted that a restored friendship could help Tesla regain investor confidence. He said they each stand to gain from a warmer relationship and that the financial markets often reward clear ties between business leaders and political figures.
Musk’s apology signals a shift in tone after a week of tough talk. He wrote that he “went too far” and that he hoped to move forward without personal attacks. His post did not mention any specific steps to prevent similar conflicts, but it emphasized respect for the office of the president.
Trump’s response suggested he will accept Musk’s overture and that he sees no need for further public debate. Trump told the New York Post that Musk’s words were “very nice” and that he wished to keep the conversation private from now on.
Market watchers will be watching Tesla’s share price in the coming days to see whether the apology and thaw in relations lead investors to return. Meanwhile, analysts will track Musk’s political commentary and its impact on company performance. The episode offers a reminder that today’s corporate leaders must weigh the effects of their public remarks on both markets and policy.
