Stock Market Amidst Pause in Record-breaking Chase - Tesla Slumps - Apple and Nike Prop Up the Dow Jones Industrial Average
In a dramatic turn of events, Tesla's stocks took a significant hit at the Nasdaq exchange, following a public spat between U.S. President Donald Trump and the company's CEO, Elon Musk. The feud, which began after Musk left his advisory role in the Trump administration and publicly criticised a Trump-backed budget reconciliation bill, saw Tesla's shares plummet, erasing over $150 billion in market value on June 5, 2025 alone [3][5].
On June 30, 2025, Tesla stock was trading at $317.66 per share but plunged to $300.71 the next day, July 1, 2025, marking a fall of about 5.3% in one session [4]. The stock had been under pressure due to the feud’s potential to jeopardize crucial regulatory approvals, government subsidies, and alienate certain consumer groups, thereby affecting Tesla’s sales and operations [1].
Meanwhile, the U.S. manufacturing sector showed a more significant improvement than expected in June, as indicated by the Institute for Supply Management (ISM) Manufacturing Purchasing Managers' Index (PMI). The index, which measures the health of the manufacturing sector, marked the first increase after four consecutive declines [6]. However, this improvement did not have a clear impact on the indices' price movements.
Elsewhere, the Dow Jones Industrial Average gained 0.48% to 44,308 points, inching closer to its all-time high. The S&P 500, on the other hand, slipped 0.19% to 6,193 points [2]. Tesla showed caution on Tuesday ahead of its expected second-quarter sales figures, while Apple stocks continued to recover, gaining 2.2%, reaching a high not seen since mid-May, due to reports that the company might use external AI solutions to improve its voice assistant, Siri [7].
In other news, Omead Afshar, a close ally of Elon Musk, departed from his position, although the reasons for his departure remain unclear [8]. As the markets continue to evolve, investors will be closely watching developments in the U.S. manufacturing sector and the ongoing feud between Trump and Musk, as well as the performance of tech giants like Tesla and Apple.
References: [1] Bloomberg, June 2025 [2] CNBC, June 2025 [3] Reuters, June 2025 [4] MarketWatch, June 2025 [5] The Wall Street Journal, June 2025 [6] ISM, June 2025 [7] TechCrunch, June 2025 [8] The Information, June 2025
- despite the U.S. manufacturing sector's improvement and the Dow Jones Industrial Average's growth, Tesla's stock continued to decline due to the feud between Trump and Musk, affecting its finance and market value.
- as Tesla's stocks faced pressure, the company showed caution ahead of its expected second-quarter sales figures, suggesting potential concerns about the company's finances and economic prospects.
