In a stunning reversal of fortune, Tesla stock has surged nearly 50% since CEO Elon Musk’s highly publicized clash with former President Donald Trump in June 2025. This remarkable recovery demonstrates how strong operational performance can overcome political uncertainty in today’s volatile markets.
Tesla Stock Plunge and Immediate Recovery
The dramatic Tesla stock selloff began on June 5, 2025, when Musk’s public dispute with Trump triggered a 14% single-session decline. Consequently, the company lost $150 billion in market value as shares hit an intraday low of $284.70. However, the panic proved short-lived. Markets quickly reassessed the situation, and by June 6, Tesla stock began its recovery, closing around $295 and establishing the foundation for an impressive summer rally.
Key Drivers Behind Tesla Stock Resurgence
Several critical factors propelled the Tesla stock recovery. Firstly, Musk’s $1 billion open-market purchase in mid-September marked his first such move since 2020, significantly boosting investor confidence. Additionally, Tesla’s strong Q2 operational results showed resilience with 410,000 vehicles produced and 384,000 delivered. The company also achieved a record 9.6 GWh of energy storage deployment, demonstrating diversified strength beyond electric vehicles.
Operational Excellence Overcomes Political Drama
Throughout July and August, Tesla made substantial progress on its full self-driving and robotaxi initiatives. Limited rollouts expanded beyond Austin into markets like Las Vegas, strengthening the bullish case for Tesla’s software and autonomy capabilities. Meanwhile, the political fallout from the Musk-Trump spat gradually faded as operational performance took center stage. Analysts noted that execution ultimately outweighed political theater in driving Tesla stock value.
Investment Impact and Market Perspective
The Tesla stock surge created significant wealth for investors who recognized the buying opportunity. A $1,000 investment at the June 5 low would now be worth approximately $1,481, representing a 48% gain. This performance highlights how quality companies can weather political storms when supported by strong fundamentals and leadership confidence. The market’s quick reassessment of political risk versus operational strength proved crucial for Tesla stock’s recovery trajectory.
Future Outlook for Tesla Stock
Looking forward, Tesla stock appears positioned for continued strength based on operational execution and technological advancement. The company’s energy storage division shows particular promise as demand for renewable energy solutions grows globally. Furthermore, advancements in autonomous driving technology could provide additional catalysts for Tesla stock appreciation in coming quarters.
FAQs
How much did Tesla stock drop after the Musk-Trump controversy?
Tesla stock dropped 14% in a single session on June 5, 2025, wiping out $150 billion in market value.
What was the lowest point for Tesla stock during this period?
Shares hit an intraday low of $284.70 amid the initial selloff before beginning their recovery.
How much has Tesla stock gained since the June low?
Tesla stock has gained approximately 48% from the June nadir, reaching $421.62 by September 16, 2025.
What role did Elon Musk’s stock purchase play in the recovery?
Musk’s $1 billion open-market purchase in mid-September significantly boosted investor confidence and accelerated the rally.
How did operational performance affect Tesla stock recovery?
Strong Q2 results showing 410,000 vehicles produced and record energy storage deployment demonstrated operational resilience beyond political concerns.
What technological developments supported Tesla stock during this period?
Progress on full self-driving and robotaxi initiatives, with expanded rollouts beyond Austin, strengthened the bullish case for Tesla’s future growth potential.
