In a notable news conference held at the White House on May 30, 2025, Elon Musk joined President Donald Trump to discuss various topics, including developments in the electric vehicle sector and the integration of artificial intelligence in Tesla’s operations. The conference followed Tesla’s disappointing earnings report, which marked the company’s first financial announcement of the season among the so-called “Magnificent Seven” tech giants. Despite achieving higher quarterly revenue, Musk’s company fell short of Wall Street expectations regarding earnings per share, largely due to increasing capital expenditures.
The earnings call focused significantly on Tesla’s ambitious projects, particularly the ongoing development of Robotaxis and Optimus humanoid robots, with little attention paid to guidance on the auto business. Musk also spoke about the anticipated artificial intelligence chip but underscored that Tesla was not positioned to rival Nvidia in the near term.
As Tesla navigated these challenges, the company faced significant pushback from unions and advocacy groups, leading to the launch of the “Take Back Tesla” campaign. This initiative aims to incite investors to reject Musk’s controversial new compensation plan, which could potentially yield nearly $1 trillion in stock for the CEO. During the earnings call, Musk took a strong stance, labeling those who oppose the pay package as “corporate terrorists,” and expressed his desire to maintain control over Tesla’s future developments, particularly concerning AI and robotics.
In market reactions, Tesla shares experienced a decline of over 3% in premarket trading following the earnings announcement.
In contrast to Tesla’s struggles, Southwest Airlines reported better-than-expected earnings, recording a profit per share where analysts had predicted a loss. Despite this positive news, Southwest’s shares remained slightly lower in premarket trading. American Airlines, on the other hand, also exceeded earnings expectations, prompting a nearly 4% increase in its stock. Eyes are now on Alaska Airlines, which is set to report earnings later in the day.
Oil markets reacted sharply following the U.S. government’s imposition of new sanctions on Rosneft and Lukoil, Russia’s leading crude oil companies. This move has driven global oil prices up significantly, particularly after U.S. Treasury Secretary Scott Bessent cited Russia’s insufficient commitment to advancing peace in Ukraine. These sanctions were reportedly a response to a failed meeting between President Trump and Russian leader Vladimir Putin.
In the tech world, Meta announced layoffs of around 600 roles within its AI division, a surprising move as many tech companies are competing to hire AI talent. This decision comes amid discussions within the tech community regarding a pause on the development of advanced AI systems known as “Superintelligence”—a proposal supported by notable figures such as Richard Branson and Steve Wozniak.
On the labor front, Starbucks Workers United has declared plans to begin voting on whether to authorize a strike, intending to rally support across the nation. The Starbucks union is calling for better wages, improved working conditions, and resolution of ongoing labor disputes. A spokesperson for Starbucks stated that the company is open to negotiations should the union return to the bargaining table.
As the day unfolds, market participants and analysts are keenly attuned to these various developments—each poised to influence trading decisions and overall market sentiment.
