The Rundown - Musk vs. Trump Feud Tanks Tesla, Lululemon Drops 20% After Cutting Forecast

Episode Date: June 6, 2025

Stock market update for June 6, 2025. This video is for informational purposes only and reflects the views of the host and guest, not Public Holdings or its subsidiaries. Mentions of assets are not recommendations. Investing involves risk, including loss. Past performance does not guarantee future results. For full disclosures, visit ⁠⁠⁠⁠⁠⁠⁠Public.com/disclosures⁠⁠⁠⁠⁠⁠⁠.

Public.com presents the rundown. Your daily market update in under 10 minutes. My name is Zadadmani, and today is Friday, June 6th. In today's episode, we are breaking down the beef between Elon Musk and Donald Trump and the impact it's having on the markets. We'll also tell you why Lulu Lemon stock is getting crushed today. Then stick around to the end of the show to find out how much money the defense tech giant and oral just raised and the growing partnership. between Silicon Valley and the Pentagon. We got a great show for you today. Let's go.

Oh boy, did we have a lot of drama yesterday. Let's first start with the stock market, though. Stocks did move lower on Thursday with the S&P 500 losing 0.5%. And the NASDAG dropped 0.8%. One of the biggest losers yesterday was Tesla, of course. Their stock was down 14% thanks to a very public beef between Tesla CEO, Elon Musk. and President Donald Trump. We're going to break all that down in detail in just a bit because it got ugly.

Now, outside of that beef, there were some notable things that happened. Like the Stablecoin Company Circle, they IPOed yesterday, and it was a huge hit. Their stock jumped more than 160% on the first day of trading. We talked more about Circle and why there's so much hype around stable coins on yesterday's show, so go check that out if you missed it. On top of that, Microsoft stock hit all-time highs yesterday, and retook the top spot for the most valuable company in the world, overtaking Nvidia.

Microsoft is quietly having a solid year, and the market cap is about to cross $3.5 trillion for the first time. To add to the good news, this morning, we got the May jobs report, which showed that 139,000 jobs were added to the U.S. economy last month, slightly less than the 147,000 jobs that were added in April, but more than the $125,000 that was. expected by economists. The unemployment rate stayed at 4.2%. So the jobs report continues to show

a healthy labor market, which I'm sure investors will love to see. In fact, markets are green across the board in pre-market trading and bouncing back from yesterday's drama-filled day. So let's finally talk about the beef that had everyone refreshing their timelines yesterday. Elon Musk and Donald Trump might have had the biggest internet beef since Drake versus Kendrick. Two of the most powerful men in the world were going bar for bar on Thursday after. which had the timeline buzzing and the stock market dropping as this meltdown played out in real time. Now, this all kind of started last week when Elon Musk publicly came out against Trump's big, beautiful tax bill. This bill recently passed the House and it's working its way through the Senate.

Elon's not a fan of this bill because it would raise the U.S. government's deficit by trillions of dollars and undermine the work that he did at Doge to save the government money. So he's been criticizing the bill for days now on Twitter and in multiple interviews. But then things really turned up on Thursday. It started with President Trump, who clapped back to Elon's criticism, saying that Elon was just mad because this bill would remove EV tax credits, which obviously would hurt Tesla. And I think after that comment from Trump, Elon kind of lost it. He hopped on X and said that Trump wouldn't have even won the election without his help.

I think he's referring to the $200 million that he dropped on. Trump's campaign. In fact, he followed that up by calling Trump ungrateful. Trump clapped back to those comments saying that he probably would have won Pennsylvania without Elon's help. And from there, things escalated fast. By the way, as this is happening, I'm at Newark Airport waiting to board my flight to get back to Houston. As soon as I get on the plane, I buy the Wi-Fi immediately and pretty much scroll Twitter for the entire flight. Anyways, back to the beef, Trump posted on truth social on Thursday afternoon that the best way for the government to save money was to potentially terminate all the contracts and subsidies to Elon's

companies like Tesla and SpaceX. He also said that Elon went crazy and that he was wearing thin. So Elon Musk and Donald Trump are going back and forth and as all this is playing out, Tesla stock is tanking. But that didn't get Elon to back down. In fact, he took it to another level. He called Trump a liar and then he played the Epstein card. Elon said that. Donald Trump was in the Epstein files and then he also retweeted a post calling for Trump to be impeached. I'm sitting in my seat in 26A, jaw on the ground as I see this on my timeline. I mean, it was crazy. And caught in the middle of all his drama was Tesla investors because by the time the markets

closed, Tesla stock dropped 14% losing more than $150 billion in market cap, which is the biggest one day drop in Tesla's history. And Elon Musk's net worth dropped by $34 billion. So yeah, this turned into a pretty expensive beef for him and Tesla investors. Because I mean, throwing public insults at the president of the United States, not a good look for any CEO, but especially Elon, since his companies do rely on government contracts, especially SpaceX. And I think at some point, Elon realized that he might have gone too far, because over the last few hours, he's now trying to de-escalate and walk back some of his comments? He's replied to multiple tweets, including Bill Ackman's, calling for Elon and Trump to work things out.

I mean, Tesla investors are sure hopeful that this will all blow over because the stock is up around 4% this morning. But, I mean, I don't know. It got pretty heated yesterday. I don't know if you can still be bros with someone after all the stuff that was said. Now, I just checked Trump's true social this morning because he likes to post in the mornings. He hasn't said anything about Elon just yet. Overall, not a good look for both parties.

but I guess it makes for good content, right? Let's talk about some stocks making moves today. Coinbase shares are climbing this morning after Coinbase CEO Brian Armstrong jumped into the Elon Trump mix yesterday. He tweeted that if the U.S. doesn't start paying off its debt, then Bitcoin could end up replacing the dollar as a reserve currency, which would be good for Coinbase's business. So yeah, Coinbase could potentially come out as a winner here and the stock is up around 2% this morning.

Now, on the flip side, Lulu Lemonstock is getting wrecked this morning after the company cut its full year guidance. The company CEO came out and said that he's not happy with the U.S. growth and he blamed cautious consumers, basically saying that people are thinking twice before drop in $120 on stretchy pants. Actually, to make matters worse, Lulu said they're planning to raise prices slightly to offset the cost of tariffs. So those expensive yoga pants are about to get even more expensive.

Can't imagine that's going to help their sales. So yeah, investors are bailing on the stock, and it's down more than 20% this morning. And finally, Broadcom shares are also slipping this morning, despite the company reporting solid earnings and an upbeat guidance. Broadcom has been riding the AI chip wave, especially making custom chips for the big cloud players, and they did beat expectations, but just not by much. The company reported $15.8 billion in revenue for Q1, slightly ahead of the 15%. $17.7 billion that was estimated, but I guess that wasn't enough for Wall Street and shares are down around 3% this morning in reaction to the earnings. Let's wrap the show with the fun fact. The defense

startup Anderl just raised $2.5 billion at a $30.5 billion valuation. That makes it one of the most valuable private companies in the U.S. Anderle was founded by Palmer Lucky. He's the guy who created the Oculus VR headset and sold that company to Facebook for $2 billion back in 2014. Now, after some fallout over at Facebook, he founded Anderall in 2017, and it's now become a major U.S. defense contractor. The company is also striking deals with tech giants like OpenAI and Meta. I think Anderl is a great example of the growing ties between Silicon Valley and a Pentagon. We're actually going to talk more about the surprising reunion and the growing partnership

between the tech industry and the U.S. military in our deep dive episode this weekend. So make sure you guys keep an eye out for that. And a bonus fun fact about that, we actually filmed that episode at the NASDAQ in New York City. So if you can, try to watch the video. Gotta say it's a pretty sick background. Well, all right, guys, that's the rundown for today. That's the rundown for this week. What a wild way to end the week.

And it's been a pretty crazy week for me. I was in New York for most of the week. Like I mentioned earlier, we filmed the deep dive episode. at the NASDAQ. We also filmed some content at the New York Stock Exchange. I posted that video on the rundown Instagram account. So go check that out if you want to learn more about my experience at the New York Stock Exchange. Overall, it's been a great week and we got the deep dive episode coming out this weekend. So make sure you guys check that out. And if you have like eight extra seconds, consider giving us a five-star rating on Apple or Spotify. And if you are listening on Spotify,

don't forget to vote in today's Spotify poll. Leave us a comment on Spotify. All of that engagement. does help us out and it helps other people find the show. Thank you guys so much for listening. Shout out to Mike and Connor for all the help behind the scenes. And we'll see you guys back here this weekend for the deep dive.