Tesla’s stock saw a notable rise of 4.5% in premarket trading following a sharp decline on Thursday, which was triggered by a public spat between CEO Elon Musk and President Donald Trump. For more details, read the original article on Yahoo Finance. The electric vehicle (EV) maker’s stock had closed over 14% lower, marking its worst single-day performance since March, and falling below the $1 trillion market cap threshold.
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Analysts from Wedbush Securities, including Dan Ives, noted that they expect the situation between Musk and Trump to de-escalate, suggesting that both figures have mutual interests that could lead to reconciliation. “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 stated in a note. The analysts believe Tesla shares are currently oversold and are closely monitoring the situation.
The tension between Musk and Trump began earlier this week when Musk criticized a bill for its spending, which escalated by Thursday. The bill’s phase-out of EV tax credits, a move that could potentially impact Tesla, was a point of contention. Musk accused Trump of lying and claimed credit for Trump’s reelection, to which Trump responded by threatening to cancel federal contracts with Musk’s companies, claiming it would save “billions.”
