B2 – Upper Intermediate
On June 5, 2025, global financial markets reacted sharply to a public dispute between U.S. President Donald Trump and Tesla CEO Elon Musk. Trump’s threat to cut off government contracts with Musk-owned companies led to a 14% drop in Tesla’s shares, dragging down Wall Street indices. This incident overshadowed positive developments, such as a phone call between Trump and Chinese Premier Xi Jinping aimed at easing trade tensions.
Read the article to know why despite some recovery in stock prices since April, investor sentiment remains fragile amid ongoing economic and geopolitical uncertainties.
Vocabulary Questions:
- What does “to get one’s teeth into something” mean? “There was plenty of meaty news for investors to get their teeth into on Thursday – U.S. President Donald Trump and Chinese Premier Xi Jinping’s long-awaited phone call, a rate cut and guidance from the European Central Bank, and more soft U.S. labor market data. “ Use it in a sentence. Give a synonym.
- What does “headwind” mean? “The headwinds haven’t gone away, but the ‘hopium’ rally could still have room to run. More on that below, but first, a roundup of the main market moves.” Use it in a sentence. Give a synonym.
- What does “thin gruel” mean? “The more optimistic take, which investors initially adopted, is that the talks were constructive and cordial, evidenced by the tone of Trump’s social media post and the fact that the two invited each other to visit. But that’s pretty thin gruel, and it wasn’t enough to support Wall Street’s initial gains.” Use it in a sentence. Give a synonym.
Discussion Questions:
- Do you think political figures should be more cautious when publicly criticizing business leaders, considering how it affects the stock market?
- How much influence do you believe Elon Musk has over investor confidence compared to political leaders like Trump?
- If you were an investor, would a public feud like this make you sell, hold, or buy more shares of a company like Tesla? Why?
- Do you think the market overreacts to high-profile drama, or is it justified given the financial risks involved?
- How should companies like Tesla respond when political leaders threaten their government contracts publicly?