Key takeout
Tesla (TSLA) rebounded stocks that were rebounded on Friday, which rose the day after the electric car maker fell 14% as it appeared to be frayed in relations between CEO Elon Musk and President Donald Trump.
Tesla shares closed below 4% that day. Public spat yesterday was wiped out over $150 billion from Tesla’s market capitalization and once again dropped out of the $1 trillion market capitalization club. Stocks fell 30% on Friday.
Musk has spent the past few days criticizing Trump-backed budget bills that are currently working through Congress. Trump responded Thursday, saying he was “very disappointed” by Musk’s criticism, claiming that the tech CEO is only having problems with the reduction in EVs and solar energy incentives passed by former President Joe Biden.
The pair continued to trade comments on social media platforms throughout most of Thursday afternoon, with Tesla stocks appearing to be falling even further with each new post. Late Thursday, Politico reported that White House aides had scheduled a peace measurement call with Musk on Friday, but subsequent reports appeared uncertain.
Continuing sales data has also put pressure on EV manufacturers’ inventory. Analysts have been turning this month to a planned launch of Tesla’s Robotax service in Austin, Texas. As a potential positive catalyst for the stock, Musk said in an interview that the plan starts with a small number of fully autonomous vehicles on the road and plans to scale up in the coming months to expand to other cities.
This article has been updated since it was first published to reflect new stock price information and context.
