Published on •Updated
Tesla stock rose marginally in pre-market trading on Wednesday after CEO Elon Musk extended an olive branch to US President Donald Trump following their public feud.
Shares were up over 2% by around midday CEST, at $332.76 (€290.98)
“I regret some of my posts about President @realDonaldTrump last week. They went too far,” Musk said in a post on X on Wednesday.
After spending millions backing Trump’s successful presidential bid, Musk heavily criticised the Republicans’ new tax and spending bill, creating a rift between the two men.
Musk was previously appointed by Trump to lead DOGE, the US’ Department of Government Efficiency. The tech billionaire argued that the new bill, dubbed by Trump as the “One Big Beautiful Bill Act”, would irresponsibly raise the public deficit and undermine DOGE’s work. Musk resigned from the department in late May after saying he was “disappointed” with spending proposals.
In an escalation of the conflict last week, Musk called for Trump to be impeached and replaced with Vice President JD Vance. He also implied that Trump was linked with late sex offender Jeffrey Epstein, an allegation the White House denied.
As for the president, Trump threatened to terminate government contracts awarded to Musk’s SpaceX firm.
On Monday, the president then took a more conciliatory tone. Trump said he wished Musk “very well” and claimed that he would retain Starlink internet service at the White House. Even so, the US President suggested that he might remove his own Tesla from White House grounds.
The value of Tesla shares have been rocked by volatility as investors track the dramas playing out in Washington — and some dump stock in protest of Musk’s politics.
Both Argus Research and Baird downgraded ratings for Tesla stock on Monday, which has seen its value drop by more than 19% since the start of the year.
Aside from the Trump-Musk feud, experts noted that risks to Tesla include the expiration of EV credits, which could dampen demand. A $7,500 tax credit for an EV purchase is set to be fully eliminated by the end of 2026, although restrictions will be applied before this.
For those wishing to use the credit in 2026, they can only buy from manufacturers that haven’t yet sold 200,000 EVs. This would disqualify Tesla.
Other challenges include increased competition in the EV market, particularly from Chinese rivals such as BYD.
Despite these storm clouds ahead, Musk’s enthusiasm about robotaxis appears to be inflating the stock’s value. The CEO is currently hoping to roll out the self-driving taxi service in Austin, Texas, on 22 June.
In a post on his X social media platform, Musk said the date could change because Tesla is “being super paranoid about safety”.
