Tesla shares rise as dispute between Trump and Musk seems to be cooling down

Shares of Tesla were up about 5% in early trading after the heated exchange between CEO Elon Musk and US President Donald Trump subsided, allaying investor concerns about possible political repercussions for the electric vehicle manufacturer.

Politico had reported that Musk and Trump were scheduled to speak this Friday, but a White House official stated that no plans for a conversation were in place.

In keeping with remarks made by hedge fund manager Bill Ackman, who advocated for a truce, Musk indicated on his social media platform X that he was amenable to defusing the dispute with Trump.

The conflict between the richest and most powerful man in the world caused Tesla’s market value to plummet by over $150 billion on Thursday, the largest single-session decline in the company’s history.

Investors who bet against the stock, known as short sellers, made almost $4 billion from the decline, the second-largest single-day profit in a single day, according to Ortex data.