Tesla Stock Sees a 4% Increase Amid Musk-Trump Tensions

Tesla (TSLA) shares increased by over 4% on Friday as investors sought indications of a reduction in hostilities between CEO Elon Musk and President Trump. This comes after a significant drop that wiped out more than $150 billion in market value just a day prior.

Market optimism surged when the White House reaffirmed its collaboration with Musk and endorsed his contentious initiative, the Department of Government Efficiency (DOGE), which aims to cut government costs.

A spokesperson from the White House stated, “Trump’s success through DOGE is undeniable, and ongoing efforts will continue to produce remarkable outcomes.” Following this statement, Tesla’s shares briefly rose by as much as 7% before settling back later in the day.

However, Trump expressed disinterest in conversing with Musk, labeling him “the man who has lost his mind” in an ABC interview. This came after reports indicated a potential scheduled call between the two, raising hopes for reconciliation.

The New York Times later reported that Trump opted to sell his red Tesla, as the ongoing feud continued to escalate tensions between the two figures.

The conflict had begun when Musk criticized Trump’s significant tax and spending bill, contributing to a 14% decline in Tesla shares on Thursday—the largest single-day drop in the company’s history.

Analyst Dan Ives remarked that the ongoing war of words could pressure Tesla shares, and offered hope that tempers would cool over the weekend. In contrast, other analysts warned of more volatility ahead, citing various factors impacting Tesla’s stock performance, including potential disappointments related to the upcoming Robotaxi launch.