Stock climbs nearly 7% following reports of potential deescalation and White House support for Musk’s controversial efficiency push
Tesla (TSLA) shares bounced back Friday morning, rising as much as 6.9%, following a dramatic $150 billion market cap loss the previous day. The sharp recovery comes amid investor hopes for a deescalation in the escalating conflict between Tesla CEO Elon Musk and President Donald Trump.
The renewed optimism was sparked by a White House statement defending Musk’s involvement in the controversial Department of Government Efficiency (DOGE) initiative. A spokesperson told The Wall Street Journal that “Trump’s success through DOGE is undisputed,” signaling continued government backing for Musk-led cost-cutting efforts despite political friction.
Rumors of a potential phone call between the two men further fueled speculation of reconciliation. White House aides reportedly scheduled a Friday conversation, although those reports were later contradicted by other outlets, including Reuters. Adding to the confusion, ABC News reported that Trump dismissed the need to speak with Musk, labeling him “the man who has lost his mind.”
Tensions escalated sharply on Thursday when Musk posted on X (formerly Twitter) in support of Trump’s impeachment and accused the president of being linked to the Jeffrey Epstein scandal. Trump retaliated on Truth Social, calling Musk “crazy” and threatening to cut federal contracts tied to his companies. The feud culminated in a historic 14% drop in Tesla shares, marking the company’s largest single-day market cap loss.
While the Friday rebound suggests investors are hopeful for a truce, the outlook remains uncertain as political and personal animosities between the former allies continue to play out in public view.
You might like this article:Broadcom Posts Record Q2 Revenue and Cash Flow on Soaring AI Demand
