Tesla stock was climbing ahead of the market open, signaling a potential comeback after an online spat between President Trump and Tesla CEO Elon Musk sent stocks plunging yesterday. Share prices were up 4.5% before the bell Friday.
Tesla stock plunged 18% in intraday trading yesterday, the sharpest sell-off in almost five years. It closed down 14.3%.
Wedbush tech analyst Dan Ives suggested the dispute was unnerving for Tesla investors.
“Musk needs Trump and Trump needs Musk for many reasons and these two becoming friends again will be a huge relief for Tesla shares,” Ives wrote in a research note Friday.
Still, he remains optimistic the stocks would rebound in spite of yesterday’s turbulence. “We will be monitoring the situation closely today but we believe Tesla shares are way oversold on this news as this spat between Trump and Musk does not change our firmly bullish view of the autonomous future looking ahead that we value at $1 trillion alone for Tesla,” he wrote.
Tesla shares tumbled Thursday following a heated exchange on social media between the president and Musk after the billionaire Tesla CEO denounced Mr. Trump’s “big, beautiful bill.” The traded jabs on X and Truth Social, with Mr. Trump at one point threatening to strip Musk’s company of its government contracts. Musk responded saying he would order SpaceX to halt its Dragon spacecraft, which has been used for NASA missions.
Musk’s net worth on Thursday plunged $34 billion, putting his valuation at $335 billion, according to the Bloomberg Billionaires Index. In addition to Tesla, Musk owns The Boring Company, Neuralink, SpaceX, X (formerly known as Twitter) and xAI.
Tesla share prices have fallen 30% year to date.
Mary Cunningham is a reporter for CBS MoneyWatch. Before joining the business and finance vertical, she worked at “60 Minutes,” CBSNews.com and CBS News 24/7 as part of the CBS News Associate Program.
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