The moment comes as Washington weighs limits on proxy advisers involved in his $1 trillion compensation fight.
- Musk’s visit marked his first White House return since his public split with Trump over budget and tax policy.
- The moment comes as Washington weighs limits on proxy advisers involved in his $1 trillion compensation fight.
- Investors are watching whether improved political ties could ease regulatory pressure on Tesla.
Tesla, Inc. shares slipped 0.1% in premarket trading on Wednesday as Elon Musk returned to the White House, a moment that signaled a fresh thaw with U.S. President Donald Trump and raised questions about whether renewed political warmth could help support his $1 trillion compensation package.
Musk Returns To Washington’s Inner Circle
Musk was invited as a guest to a gala dinner honoring Saudi Crown Prince Mohammed bin Salman, joining a guest list that included Tim Cook, Jensen Huang, Bill Ackman, Marc Benioff, David Ellison, Cristiano Ronaldo, and senior Republican leaders.
The event marked a moment of renewed political warmth following months of strained relations. Musk had left Washington in May after clashing with Trump over a budget and tax-cut package, which he criticized as a “disgusting abomination.” The disagreement fractured what had been one of the closest alliances between a president and a major U.S. CEO in recent history.
Fallout From Musk’s Washington Turn
Musk’s political influence peaked earlier this year when he headed the Department of Government Efficiency, the Trump administration’s cost-cutting initiative. His time in Washington and his substantial spending in support of Trump’s 2024 campaign had drawn both praise and scrutiny, and weighed on Tesla’s brand as consumers increasingly associated the automaker with Musk’s political positions.
The fallout escalated through the summer. Trump withdrew the NASA nomination of Musk ally Jared Isaacman, and also signaled frustration over Musk’s criticism of his signature tax bill. The White House later ended Musk’s “five things” performance-report policy for federal employees, a program he had introduced while in government.
Despite the turbulence, Trump has publicly defended Musk in recent months, even calling him a “good person” after a Gallup poll showed Musk had the most negative image among 14 major U.S. public figures.
Spotlight Returns To Musk’s $1 Trillion Compensation
Musk’s reappearance at the White House comes weeks after shareholders approved his landmark $1 trillion Tesla compensation package, marking one of the largest pay authorizations in corporate history. The vote followed an intense battle with proxy-advisory firms ISS and Glass Lewis, both of which had recommended investors oppose it.
The White House is reportedly weighing proposals to limit the influence of proxy advisers and index-fund giants, moves that align with Musk’s long-standing criticism of their power over corporate governance.
Stocktwits Users Show Bearish Mood
On Stocktwits, retail sentiment for Tesla was ‘bearish’ amid ‘high’ message volume.
Tesla’s stock has risen 0.6% so far in 2025.
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