Tesla Inc. (NASDAQ: TSLA) shares rallied more than 5.5% on Friday, as investors welcomed signs of a possible reconciliation between CEO Elon Musk and former President Donald Trump. The surge followed a sharp selloff triggered by a public spat between the two, which had stoked fears of renewed regulatory pressures if Trump returns to power.
Wedbush analyst Dan Ives called Thursday’s fallout “one of the strangest Twilight Zone days we have seen” in years of tracking Musk. He acknowledged the drama but argued the market overreacted. “The social media and war of words back and forth is not good for anyone and puts massive pressure on Tesla shares,” he wrote, warning that an adversarial turn from Trump could spell a more challenging regulatory backdrop in Washington.
However, Ives pointed to encouraging signs that tensions may be cooling. Reports suggest a White House-arranged call between Musk and Trump could help mend relations. “Musk needs Trump and Trump needs Musk for many reasons,” Ives said, adding that renewed cooperation would offer major relief for Tesla shareholders.
Tesla shares tumble as clash with Trump wipes $152bn from Elon Musk’s company value
Despite the turbulence, Ives reaffirmed his bullish outlook, insisting the spat doesn’t alter Wedbush’s long-term view. “We believe Tesla shares are way oversold on this news,” he said. “This does not change our firmly bullish view of the autonomous future looking ahead, which we value at $1 trillion alone for Tesla.”
The rebound caps a volatile week for Tesla stock, which had been hit by concerns that a soured relationship with Trump might trigger regulatory headwinds. Friday’s recovery suggests the market is regaining confidence that the high-profile rift may soon be resolved.
