Today, Tesla shares have rebounded from yesterday’s sharp losses after a heated exchange between CEO Elon Musk and U.S. President Donald Trump seemed to die down.
The bounce back provides relief for investors as concerns grow over potential political repercussions for the electric automaker.
During yesterday’s war of words, Tesla saw the biggest single-day drop in its market value, exceeding $150 billion.
The tensions that erupted on Musk’s platform, X, intensified after Musk voiced strong criticism of Trump’s “Big beautiful bill,” which proposes ending the $7,500 EV tax incentive by the end of 2025.
In response, Trump suggested cutting the government’s contracts with Musk’s companies, including rocket manufacturer SpaceX.
On X, there were signs of a truce when hedge fund manager Bill Ackman urged the pair to “make peace for the good of our great country,” and Musk replied, “You’re not wrong.”
Today, Tesla shares rose by as much as 5% during premarket trading, as rumors circulated about a potential truce call between Musk and Trump. However, White House officials state there are no plans for Musk and President Trump to speak by phone today.
Tesla’s stock has fallen 29.5% this year, following a 14% decline on Thursday.
By CEO NA Editorial Staff
