The stock rose nearly 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.
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But Trump told CNN on Friday, "I m not even thinking about Elon," adding the billionaire has "got a problem".
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.
"It might be a bit too hopeful to think their relationship will ever go back to what it once was, but if cooler heads prevail and the tension eases, that would definitely be a big improvement for Tesla," said Tesla shareholder Matthew Britzman, who is an analyst at Hargreaves Lansdown.
A 3D-printed miniature model of Elon Musk and the Tesla logo are seen in this illustration taken January 23, 2025. REUTERS/Dado Ruvic/Illustration/File Photo Purchase Licensing Rights, opens new tab
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An open clash with Trump could pose multiple hurdles for Tesla and the rest of Musk s sprawling business empire.
The U.S. Transportation Department regulates vehicle design standards and would have a big say in whether Tesla can mass-produce robotaxis without pedals and steering wheels.
Tesla did not immediately respond to a request for comment.
Tesla stock is down 26.9% this year following 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.
Stronger sales from potential Republican customers were expected to offset a liberal boycott, but analysts warned that Musk s recent actions may erode that buffer too.
"With Musk alienating Republicans, there is no one left to prop up consumer sentiment towards Tesla, which could lead towards a full-scale collapse in brand perception," said political strategist Evan Roth Smith, co-founder of Slingshot Strategies.
