Trump and Musk Reunite: What Their Surprise Meeting Could Mean for Tesla and the US Stock Market

Public reconciliation at Charlie Kirk memorial raises hopes for improved ties, Tesla recovery, and investor optimism

Trump and Musk Seen Reconnecting at High-Profile Memorial

Former adversaries Donald Trump and Elon Musk were spotted talking and sitting together at the memorial service for conservative activist Charlie Kirk, held on Sunday. The event, attended by over 90,000 people including the entire US cabinet, marked the first public interaction between the two since their highly publicised fallout earlier this year.

The White House’s official account on X (formerly Twitter) posted a photo of the duo with the caption “POTUS x @ElonMusk,” which Musk shared to his own followers. Their apparent reconciliation has sparked widespread speculation across political and investment circles.

A Bitter Feud Comes to a Pause

Earlier this year, Musk and Trump’s feud took centre stage after Musk openly criticised Trump’s "big beautiful bill"—a controversial legislative move that eliminated vital EV tax credits, heavily impacting Tesla’s revenue potential.

Their dispute escalated when Musk resigned from his post in the Department of Government Efficiency, accused Trump of links to disgraced financier Jeffrey Epstein, and teased the formation of his own political party.

Trump retaliated by threatening to terminate federal contracts with Musk-led companies like SpaceX and even suggested the possibility of Musk’s deportation. Tesla stock suffered significant declines as investors feared the fallout could jeopardise both government support and regulatory pathways.

Could This Be a Turning Point for Tesla?

The renewed public engagement between Trump and Musk could signal a thawing of relations and a more favourable regulatory landscape for Tesla and other Musk ventures. This could include:

• Reinstated or new government contracts
• Less aggressive EV regulation
• Political backing for technological innovation, including Tesla’s robotaxi initiative

Tesla shares, which had been volatile during the feud, have recently rebounded. The stock is currently up around 2% in 2025—still lagging behind the NASDAQ Composite’s 16% rise but showing signs of renewed investor confidence.

Notably, Musk recently reaffirmed his commitment to Tesla by purchasing an additional $1 billion worth of shares. This move has helped restore some faith among shareholders that his focus remains on the company’s long-term growth.

Market Implications and Investor Takeaways

This unexpected public reconciliation could reshape investor sentiment around Tesla and the broader tech sector in the US. Key implications include:

• Investor sentiment boost: Renewed ties with the White House could lead to reduced regulatory pressure and more consistent policy support.
• Tech sector resilience: If Musk regains political favour, it may offer wider protection and incentives for innovation-focused firms.
• Potential for policy-driven gains: Should new tax incentives or federal investments in AI, EVs, or space tech emerge, Tesla and its peers could benefit significantly.

Final Thought: A Strategic Opportunity?

While the US stock market remains cautious, this developing relationship between Trump and Musk could bring clarity and direction to investors watching the EV and tech sectors closely. With Tesla shares already showing some recovery and political risks potentially easing, the situation could mark a medium-term buying opportunity for those bullish on Musk’s leadership and the company’s innovation roadmap.

Investors should, however, remain vigilant for policy updates and market reactions over the coming weeks.

Source:  (Investing.com)