Elon Musk’s epic scorched-earth campaign against former ally Donald Trump vaporized over $150 billion in Tesla’s market cap during a single day, an all-time record for the stock, but the fireworks may only just be starting.
Although 77 million Americans voted for Trump, the only reason in Musk’s mind that Trump even sits behind the Resolute Desk is because the Tesla CEO put him there.
“Get the popcorn out,” Ives told CNBC, “I don’t think we’re done here.”
Ives feared Musk’s response to go ballistic on the most powerful man in the world would threaten prospects for a favorable regulator
“The quickly deteriorating friendship and now ‘major beef’ between Musk and Trump is jaw-dropping and a shock to the market,” Ives warned in a research note on Thursday, adding it is “putting major fear for Tesla investors on what is ahead.”
Later, however, Ives tempered his views somewhat as Politico reported White House aides reached out to Musk to mend fences.
“Musk needs Trump and Trump needs Musk for many reasons, and these two becoming friends again will be a huge relief for Tesla shares,” Ives then wrote on Friday, calling the stock oversold.
While it’s indisputable that both men can inflict substantial damage on the other, it’s not in Musk’s nature to easily forgive and forget. Just the opposite, in fact.
He adopted the same approach with politics.
Secondly, Musk is well known for nursing a grudge.
Politically, Isaacson says Musk’s split with the Democrats can be traced to being snubbed by Biden for an invitation to an EV summit in the White House.
Time for Tesla investors, then, to stock up on popcorn while they still can.
