KEY TAKEAWAYS
Tesla ( TSLA ) shares are rising in premarket trading Tuesday after gaining more than 8% over the past two sessions in the wake of the public spat between CEO Elon Musk and President Trump last week.
The gains may point to some cooling of tensions between the two, at least if Musk's actions are anything to go by: He has reportedly appeared to delete some of his posts on his social media platform X, CNBC noted, for instance, and also retweeted Trump's criticism of California Gov. Gavin Newsom. The share price gain may also signal that investors are increasingly looking forward to Tesla's expected launch of its robotaxi service in Austin, Texas, as soon as this week.
The stock’s rise is bucking negative views from analysts who see Tesla shares as affected by Musk’s relationship with Trump over the EV maker’s fundamentals. Analysts from Argus Research and Baird said that Tesla is still a favorite stock for the long term but downgraded their ratings to "hold" for the time being.
Musk has publicly opposed Trump’s “Big Beautiful” taxation-and-spending bill, while Trump has accused Musk of doing so for reasons connected to his businesses. The friction triggered a sharp sell-off in Tesla shares, which plunged almost 15% last week. Trump on Saturday said he assumes his relationship with Musk is over .
Tesla shares are rising 3% in intraday trading Tuesday but are down by more than a fifth so far this year entering Monday.
UPDATE—June 10, 2025: This article has been updated to include signs of a cooling of frictions between Trump and Musk and refreshed share prices.
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