Key Points – Tesla shares rebounds
- Tesla shares rebounds 5% after massive 14% drop Thursday
- Public feud between Musk and Trump triggered investor panic
- Reports of potential call between Trump and Musk emerge
- Musk slammed Trump’s tax bill and suggested deep political rift
- Analysts warn upcoming Robotaxi event could cause more volatility
- Cathie Wood dumps nearly 50,000 Tesla shares in one week
- Tesla stock still down nearly 30% in 2025
Market Shows Signs Of Life
Tesla shares rebounds 5% Friday morning after a dramatic plunge the day before. The 14.3% drop had rattled markets as Elon Musk and Donald Trump clashed over Republican tax plans.
The spat reached a boiling point Thursday, with insults flying on X and Truth Social. Musk criticized Trump’s legislation. Trump hit back, threatening to cut Tesla off from federal contracts.
Mixed Signals On Reconciliation
There’s confusion over whether the two titans might speak again. Politico claimed a call was scheduled for Friday. Bloomberg denied it.
Investors hope for peace. Analysts like Dan Ives said the feud felt like “junior high drama,” but could have real consequences. A regulatory crackdown might be coming if Trump turns fully against Tesla.
Wall Street Watches Robotaxi Event
While Tesla shares rebounds for now, fears aren’t gone. The Robotaxi launch next week could trigger another swing.
CFRA’s Garrett Nelson said the stock rally after Q1 earnings may have been overblown. He cited international market share losses and overhyped expectations.
Some investors fear a “sell the news” dip if the launch underwhelms.
Major Investors Back Away
Cathie Wood’s ARK Invest trimmed its Tesla holdings again. Nearly 50,000 shares were sold over the past week.
That shake-up comes amid Tesla’s sharp drop from its all-time high. The company’s market value remains down 41% from peak levels.
Public Reactions Intensify
Social media buzzed with reactions to Musk’s callout. Some users backed his bold stance. Others warned he was risking Tesla’s future for a personal fight.
One viral post read: “Tesla shares rebounds today, but will it hold if Trump goes full enemy mode?”
Musk’s claim that Trump appeared in Epstein files drew intense backlash and media frenzy.
Technical Breakdown And Recovery
Tesla’s drop pushed it below key technical support levels. It fell past the 21-day, 50-day, and 200-day moving averages.
The rebound Friday suggested some bargain-hunting. Still, with a 5.3% average true range, Tesla remains volatile.
The S&P 500 and Nasdaq remain strong. But Tesla’s instability could spread if drama continues.
The Road Ahead
Tesla shares rebounds for now, but questions remain. Will Musk and Trump cool down? Will Robotaxi succeed or flop?
Analysts remain cautious. Some say the feud is a distraction from deeper issues in Tesla’s business.
Others worry it could spark regulatory action against Musk, especially if political tides shift.
Investors are holding on—for now. But another bad headline could send shares tumbling again.
Expect fireworks in the days ahead. The stock market loves drama. And with Tesla and Trump, there’s no shortage of it.
