TLDR
- Tesla stock rose 2.2% after Musk met Trump publicly for the first time since their fallout
- Trump told Musk “I’ve missed you” during their brief conversation at Charlie Kirk’s funeral
- Tesla stock now sits near record highs around $489 after a 79% gain over 12 months
- BYD dropped 3.6% after Warren Buffett completely exited his 17-year position
- Technical analysts warn Tesla shares look overbought following recent 23% rally
Tesla stock jumped 2.2% in after-hours trading Monday following a surprising public reunion between CEO Elon Musk and President Donald Trump. The meeting happened at Charlie Kirk’s funeral in Arizona, their first public interaction since political tensions erupted earlier this year.
Video footage captured the moment inside Trump’s private box at State Farm Arena. Professional lip reader analysis revealed Trump asking “How are you doing?” before suggesting they “get back on track.”
The conversation ended with Trump grabbing Musk’s hand and saying “I’ve missed you.” This marked a dramatic shift from June when Musk quit his government role and attacked Trump’s policies on social media.
Traders immediately connected Tesla’s stock movement to this political reconciliation. The timing wasn’t lost on Wall Street observers who’ve tracked the relationship closely.
Record Territory Within Reach
Tesla stock has surged toward record levels with shares now approaching the $489 all-time high. The electric vehicle maker gained 23% over nine trading sessions, winning eight of those days.
Multiple factors drive the rally beyond political theater. Musk recently purchased $1 billion worth of Tesla stock, boosting investor confidence.
The company also prepares to expand its robotaxi service beyond Austin, Texas. Nevada and Arizona appear next in line for the autonomous vehicle program.
Federal Reserve rate cuts provide additional tailwinds. Lower borrowing costs help car buyers since most finance their vehicle purchases.
Tesla’s year-to-date performance shows 6% gains while the 12-month return reaches 79%. This outpaces most major automakers and tech stocks.
Chinese Competition Faces Pressure
While Tesla climbs, Chinese rival BYD suffered its worst day in three weeks with a 3.6% decline. Warren Buffett’s Berkshire Hathaway disclosed it completely exited its BYD position.
Buffett first invested in BYD during September 2008, purchasing 225 million shares. The position generated over 4,500% returns before Berkshire began trimming in 2022.
BYD has lost nearly 30% from its peak four months ago. Intense price competition in China’s electric vehicle market pressures all manufacturers.
Technical analyst Katie Stockton from Fairlead Strategies warns Tesla appears overbought. “The next and final resistance is at the high, about $489,” she noted.
Tesla’s volatility exceeds most large-cap stocks with an 80% price range relative to average price this year. Apple’s comparable metric sits around 40%.
The reunion video went viral across social media platforms, generating millions of views within hours of posting.
