Tesla Stock: Trump-Musk Drama & 5% Jump
- Shares of Tesla (TSLA) saw a 3.4% increase in premarket trading Friday, following a significant downturn triggered by tensions between CEO Elon Musk and president Donald Trump.
- The recent clash stems from Musk's criticism of Trump's "big, stunning bill," a sweeping tax and spending cut package.
- Wedbush Securities analyst Dan Ives believes a reconciliation between Musk and trump could substantially benefit Tesla shares.
Tesla stock Recovers After Musk-Trump Feud Sparks $152 billion Selloff
Shares of Tesla (TSLA) saw a 3.4% increase in premarket trading Friday, following a significant downturn triggered by tensions between CEO Elon Musk and president Donald Trump. the prior dayS trading saw Tesla’s market capitalization plummet by $152 billion.
The recent clash stems from Musk’s criticism of Trump’s “big, stunning bill,” a sweeping tax and spending cut package. Musk called the bill a “disgusting abomination,” leading too a public falling out after Trump initially praised Musk’s work heading the Department of Government Efficiency (DOGE).
Wedbush Securities analyst Dan Ives believes a reconciliation between Musk and trump could substantially benefit Tesla shares. “Musk needs Trump and Trump needs Musk for many reasons and these two becoming friends again will be a huge relief for Tesla shares,” Ives wrote in a note Friday,adding,”We will be monitoring the situation closely today but we believe Tesla shares are way oversold on this news.”
The sharp decline in Tesla’s stock occurred after Musk publicly criticized Trump’s policies. Trump responded by questioning their continued relationship, causing investor concern and the subsequent selloff.
musk slammed the bill on thursday calling it a “disgusting abomination” — to which Trump replied that though he and Elon “had a great relationship,” he doesn’t know “if we will anymore.”
What’s next
Investors are closely watching for any signs of a thaw in the relationship between Musk and Trump, as it could signal renewed confidence in Tesla and its future prospects. The Tesla stock price remains sensitive to news surrounding this elon Musk–Donald Trump dynamic.