The shares of Tesla Inc. (NASDAQ:TSLA) climbed 4.98% during the Friday pre-market trading session after indications of a possible reconciliation between CEO Elon Musk and President Donald Trump.
What Happened: On Thursday, Tesla’s market cap plummeted by a record $152 billion, marking the company’s largest market cap loss in history. This decline was attributed to an intensified conflict between Musk and Trump over the latter’s “Big Beautiful Bill.”
In a subsequent interview with Politico, Trump hinted at a potential reconciliation with Musk, and the White House reportedly initiated efforts to de-escalate the situation.
Meanwhile, Dan Ives, a prominent Wall Street analyst, believes that the ongoing feud between Musk and Trump will soon come to an end, allowing Musk to refocus on Tesla and its autonomous driving ambitions. Through a post on X, he also suggested that Tesla’s stock is currently oversold.
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Why It Matters: The feud has not only affected Tesla’s stock but also sparked a public outcry for reconciliation. Notable figures such as billionaire hedge fund manager Bill Ackman and rapper Ye have called for a resolution between the two influential figures. Elon Musk also seemed to embrace the idea of making peace with the President by responding to Ackman, saying, “You are not wrong.”
This development, coupled with Ives’ optimistic outlook, could signal a potential recovery for Tesla’s stock in the near future.
Meanwhile, Goldman Sachs lowered its price target on Tesla on Friday from $295 to $285 while reiterating a ‘Neutral’ rating, reported Investing.com. The analysts based their revised outlook on weaker monthly data from major regions such as the United States, Europe, and China. Goldman Sachs now projects Tesla's second-quarter deliveries to fall between 335,000 and 395,000 vehicles, depending on June’s results and how aggressively Tesla employs incentives.
Benzinga Edge Stock Rankings shows that Tesla had a strong price trend over the short, medium and long term. Its momentum ranking was moderate at the 92nd percentile, whereas its value ranking was poor at the 9th percentile; the details of other metrics are available here.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
