Tesla jumps 5% in premarket trading as stock reels from Trump-Musk drama

Tesla's stock experienced a notable rise in premarket trading on Friday, recovering from a significant decline influenced by the escalating feud between CEO Elon Musk and former President Donald Trump. As of 5 a.m. ET, Tesla shares surged by 5.1%. The recent verbal sparring began as Musk's role as the head of the U.S. Department of Government Efficiency concluded last week. Initially, Trump had commended Musk for his management of the DOGE initiative, which aimed to streamline federal government costs. However, this praise quickly soured when Musk criticized Trump's extensive tax and spending plan, labeling it a 'disgusting abomination.' In response to Musk's remarks, Trump expressed uncertainty about the future of their relationship, noting that while they had previously enjoyed a strong rapport, he was unsure if that would continue. Following this public disagreement, Tesla's stock plummeted by 14%, resulting in a staggering loss of $152 billion in market capitalization, dropping the company below the $1 trillion valuation. Wedbush Securities analyst Dan Ives commented on the situation, suggesting that while the conflict between Musk and Trump might resolve, it is crucial for both parties to de-escalate tensions. Ives maintained a positive outlook on Tesla and its autonomous vehicle prospects, but acknowledged that the feud poses challenges for Trump's regulatory agenda moving forward.