Tesla shares recouped some losses triggered by a spat between CEO Elon Musk and U.S. President Donald Trump, although a truce appeared uncertain on Friday as a White House official said the president was not keen on talking to his former ally.
The stock rose 4% after a steep fall in the previous session that wiped out $152 billion in market value when the world’s most powerful man and its richest publicly entered a war of words over the tax and spending bill.
Earlier, a Politico report had said Trump and Musk were likely to talk later in the day. Musk had signalled on X he was open to easing tensions with the president, agreeing with calls for a detente from users on the social media platform.
Tensions escalated on Thursday after Musk stepped up his criticism of Trump’s sweeping tax bill, which proposed largely ending the popular $7,500 EV tax incentive by the end of 2025. In response, Trump suggested cuts to the government’s contracts with Musk’s companies, including rocket maker SpaceX.
Tesla stock is down 29.5% this year after a 14% drop on Thursday. Still, the shares trade at 120 times expected earnings, a lofty multiple compared to other automakers and even tech giants such as Nvidia.
The shares have been on a turbulent ride since last July when Musk backed Trump’s White House bid. They surged initially as investors bet on less regulatory pressure for robotaxis, but tumbled due to soft sales and brand fallout from Musk’s political stance.
