Trump-Musk Feud Last Phase: Tesla WON

After a dramatic public feud, Donald Trump and Elon Musk are showing signs of reconciliation—just as Tesla enters a pivotal moment in its future.

Trump Welcomes Musk’s Apology—but Keeps Some Distance

After days of political mudslinging and social media chaos, Elon Musk extended an olive branch. “I regret some of my posts about President @realDonaldTrump last week. They went too far,” Musk wrote on X late Tuesday.

According to The New York Times, Musk had already spoken privately with Trump on Monday night in a phone call reportedly brokered by Vice President JD Vance and White House Chief of Staff Susie Wiles.

By Wednesday, Trump responded publicly, telling The New York Post:

“I thought it was very nice that he did that.”

However, on his “Pod Force One” podcast, Trump made it clear that full reconciliation isn’t his priority right now:

“I have no hard feelings… I was a little disappointed… I guess I could [make up], but we have to straighten out the country.”

Government Contracts Safe—for Now

Amid earlier threats to pull government contracts from Musk’s companies, the White House confirmed there have been no efforts to review federal deals with Tesla or SpaceX.

That’s significant: Musk’s companies received $3 billion in federal contracts in 2023 alone, and multiple federal agencies are currently investigating or suing Musk’s firms. Musk’s apology may have helped reduce the political risk to those funds—at least for now.

Morgan Stanley: Tesla Is More Than Just an EV Company

In a newly released investor note, Morgan Stanley analysts reaffirmed Tesla’s “Overweight” rating and $410 price target, despite short-term brand volatility tied to Musk’s political antics.

Their take:

“This is likely part of Elon’s planned strategy to attract maximum public attention to specific goals in this way.”

While they acknowledge Tesla has faced negative brand sentiment as a result of Musk’s actions, they stress that Tesla’s management is fully aware and unfazed, seeing it as part of a longer-term game plan.

Tesla as the Top AI/Industrial Play in the US

Morgan Stanley insists that Tesla is the most strategically positioned company in the US when it comes to what they call “physical AI”—a convergence of data, robotics, energy, and infrastructure. Key sectors where Tesla leads:

Autonomous vehicles (robotaxis, FSD)
Humanoid robots
AI-based energy storage systems
Supercomputing and in-house chip design
Manufacturing automation
Space, communications, and satellite networks (via Starlink and SpaceX)

“Tesla’s growth and profit potential go far beyond traditional electric vehicles,” the report notes.
“We can’t think of any other company as well positioned in these critical areas.”

They also caution investors to brace for higher volatility if the Musk–Trump feud reignites, but reiterate their belief in Tesla as the first-choice stock in the US automotive and tech-adjacent sector.

Tesla’s Next Big Leap: Robotaxis Arrive June 22

Tesla’s much-hyped robotaxi service is scheduled to launch in Austin, Texas on June 22, marking a major step toward Musk’s long-promised autonomous future. Initially, Tesla will use Model Y vehicles, before launching a steering wheel–free Cybercab in 2026.

But challenges remain. Tesla’s camera-only Full Self-Driving (FSD) system lacks lidar, which competitors like Waymo use and experts say is safer. The NHTSA is investigating multiple FSD-linked crashes, including a fatality tied to reduced visibility.

Still, Musk is betting big, claiming this will be a world-changing product:

“This will be the largest asset value increase in human history.”

And Morgan Stanley agrees: despite volatility, regulatory pressure, and market skepticism, Tesla’s robotaxi and AI infrastructure could redefine mobility, manufacturing, and economic productivity—making it not just a car company, but a cornerstone of the 21st-century industrial ecosystem.