In a surprising move aimed at easing tensions, White House aides have scheduled a call between US President Donald Trump and billionaire entrepreneur Elon Musk. The two influential figures have been engaged in a high-profile public spat that has had far-reaching economic and political implications, including a significant impact on Tesla’s stock market performance.

A White House intervention

According to a report by Politico, the White House arranged the phone call in hopes of calming the rising tensions between the two prominent personalities. The development is seen as a step towards reconciliation, particularly after Musk made controversial remarks suggesting the impeachment of President Trump over recent policy decisions.

This comes after a sharp reaction from Musk in which he threatened to decommission SpaceX's Dragon spacecraft, currently the only US vehicle capable of sending astronauts to the International Space Station (ISS). The move raised alarms within the aerospace and defence community, prompting urgent diplomatic and political intervention. Musk, however, retracted the threat late on Thursday, signalling a possible shift in tone.

The Ackman factor and softening stance

Adding to the momentum towards peace, billionaire investor Bill Ackman publicly called for Trump and Musk to reconcile, stating that their mutual influence was too important for political division. In response, Musk tweeted, “You’re not wrong,” hinting at a softening of his earlier aggressive posture.

The subtle nod from Musk suggests a willingness to dial down the confrontation, even as both men remain known for their blunt and combative use of social media.

Root of the conflict: a divisive bill

The spat was sparked after Musk slammed Trump’s newly unveiled economic policy bill, dubbed by the president as the “big, beautiful bill.” Musk labelled the bill a “disgusting abomination”, accusing it of driving up the federal deficit and endangering long-term economic stability.

Experts estimate that the bill, if passed, could increase the national debt by anywhere between $2.4 trillion and $5 trillion over the next decade. Musk’s comments struck a nerve within Republican circles, creating deep fractures within party lines and jeopardising support for the legislation in Congress.

Tesla takes a hit, partial rebound after call news

The feud had immediate financial ramifications, especially for Tesla Inc., where Musk serves as CEO. Following Musk’s threat over the Dragon spacecraft and his criticism of Trump’s bill, Tesla shares plunged over 14 per cent in a single day, erasing more than $150 billion in market value.

However, news of the scheduled call between Trump and Musk brought some relief, with Tesla shares rising 5 per cent in pre-market trading, indicating a partial recovery and renewed investor confidence.

Musk’s political evolution and Trump’s policy path

The tension between Musk and Trump is emblematic of growing rifts between business leaders and policymakers. Once seen as close allies, with Musk even serving as a strategic adviser to Trump during his previous administration, the relationship has soured amid diverging policy views.

Musk, who contributed financially to Trump’s presidential campaign, recently claimed that Trump would not have won without his support. At the same time, Musk warned that Trump’s import tariffs could plunge the US into a recession, highlighting the disconnect between their current economic outlooks.

Reconciliation on the horizon?

While it remains to be seen what outcomes the Trump–Musk call will produce, analysts suggest that both sides have much to gain from de-escalation. Trump could benefit from Musk’s economic insights and public support ahead of critical legislative votes, while Musk stands to protect his companies from political backlash and regulatory uncertainty.

If successful, the call could mark the beginning of a thaw in relations and a return to mutual collaboration, especially on issues like space exploration, infrastructure development, and economic reform.

For now, the world watches closely as two of America’s most powerful individuals prepare to confront their differences—this time, on a phone line instead of Twitter.

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