Tesla stock jumps after wipeout sparked by the Musk-Trump blowup
Andrew Harnik/Getty Images
- Tesla stock rose on Friday after shares dropped 14% in Thursday's session.
- Elon Musk and President Donald Trump publicly traded barbs following criticism from the Tesla CEO.
- Trump threatened to cancel government contracts with Musk's companies amid escalating personal attacks.
Tesla stock rose on Friday after dropping sharply in Thursday's session following a public spat between CEO Elon Musk and President Donald Trump.
Shares of the EV maker rose as much as 6% on Friday to around $302.55. The stock is down 26% for the year.
Tesla closed more than 14% lower on Thursday— its worst single-day performance since March—after a barrage of posts from Musk attacking both the president and his "Big Beautiful Bill." The decline dragged the stock below the $1 trillion market cap threshold.
The rebound on Friday began as both Musk and the US president signalled they were open to making amends.
On X, Musk responded to a post from billionaire investor Bill Ackman, which suggested that Trump and Musk "should make peace for the benefit of our great country."
"You're not wrong," Musk wrote in reply.
"Oh it's okay," Trump told the outlet when asked about his public conflict with Musk. "It's going very well, never done better," he added.
However, after Politico reported that White House aides said Musk and Trump have also scheduled a phone call on Friday, a senior White House official told NBC that the president was not interested in a call.
Analysts at Wedbush Securities including Dan Ives, a Tesla permabull, said in a Friday note they believed cooler heads would prevail.
"Musk needs Trump and Trump needs Musk for many reasons and these two becoming friends again will be a huge relief for Tesla shares," they wrote. "We will be monitoring the situation closely today but we believe Tesla shares are way oversold."
The feud between Musk and Trump began simmering earlier this week when Musk criticized the sweeping tax and budge bill that is a cornerstone of Trump's agenda.
By Thursday, tensions had escalated significantly. Trump said Musk was upset about the bill's phasing-out of EV tax credits, which could hurt Tesla.
Musk fired back and accused Trump of lying, before claiming credit for Trump's reelection.
"Without me, Trump would have lost the election," he wrote on X.
Trump responded by saying that Musk "went CRAZY" in a post on Truth Social and threatened to cancel federal contracts with Musk's companies, saying it would save "billions."