Tesla Tumbles on Trump-Musk Feud, Lululemon Plunges, Planet Labs Up
Jun 5, 2025
Tensions between Elon Musk and Donald Trump led to a significant drop in Tesla shares, showcasing the impact of political feuds on markets. Lululemon's stock tumbled after revealing concerns over tariffs and slowing growth, prompting adjustments to earnings forecasts. In contrast, Planet Labs enjoyed a stock surge fueled by strong demand for satellite data amid geopolitical changes, highlighting the volatility of the retail sector. The contrasting performances of Dollar Tree and Dollar General further illustrate the unpredictable nature of the current market landscape.
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insights INSIGHT
Tesla-Two Powerhouses Clash
Tesla shares dropped 14% due to Elon Musk and President Trump's public feud. - This conflict raises risks of retaliation against Musk's companies like Tesla and SpaceX.
insights INSIGHT
Chewy Faces CFO Transition Concerns
Chewy stock gained slightly despite a downgrade from Jeffries to hold from buy. - The CFO departure concerns investors about maintaining financial discipline.
insights INSIGHT
Dollar Tree Tariff Impact Nuance
Dollar Tree stock rose 9.1% after JP Morgan upgraded it despite tariff-related profit warnings. - Dollar Tree is more exposed to tariff impacts than Dollar General due to product mix differences.
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- Tesla (TSLA) shares sank as Elon Musk and President Donald Trump’s simmering feud devolved into a public war of words between two of the world’s most powerful people. Trump on Thursday said he was “very disappointed” by the Tesla chief executive officer’s criticism of the president’s signature tax policy bill. Musk fired back in several social media posts, saying in one that “without me, Trump would have lost the election.” The president later floated terminating federal contracts and subsidies extended to Musk’s companies and said that he had asked the Tesla and SpaceX leader to leave his administration, which Musk said was a “lie.” Musk went a step further late in the day, saying he would decommission a SpaceX craft used by the US.
- Lululemon (LULU) shares fell sharply after its latest earnings report highlighted the risk posed by new tariffs while exacerbating investor concerns about slowing growth. The company sees sales in the range of $2.54 billion to $2.56 billion for its fiscal second quarter, below the average analyst estimate. For the full year, Lululemon reduced its earnings per share outlook by about 2.5%. The company and its retail peers are trying to manage supply chains that have been upended by US President Donald Trump’s trade wars. Apparel and footwear production hubs in Asia including China and Vietnam face elevated tariff rates as the White House negotiates new trade deals.
- Planet Labs (PL) shares skyrocketed as much as 55% - a record jump — after the company’s first-quarter revenue topped expectations. Citizens analyst said the satellite-data provider had a “stellar quarter” and the stock remains an opportunity for long-term capital appreciation.