Tesla (TSLA) Stock Recovers from Trump-Musk Dispute Ahead of Robotaxi Launch

TLDR

Table of Contents

Tesla stock rose 2.1% in early trading Tuesday to $314.75 after recovering from last week’s Trump-Musk feud
Tesla stock had fallen 17% over two days due to social media disagreements between Musk and President Trump
The company is set to launch its robotaxi service in Austin, Texas as early as June 12
Wedbush analyst Dan Ives maintains $500 price target, seeing potential $2 trillion market cap by 2026
Tesla stock is down 24% year-to-date but up 75% over the past 12 months

Tesla stock climbed in early Tuesday trading as investors moved past last week’s public spat between CEO Elon Musk and President Donald Trump. Shares gained 2.1% to $314.75 in premarket trading.

The electric vehicle maker’s stock had tumbled 17% over two trading days last week. The drop came after disagreements between Musk and Trump escalated into a war of words on social media platforms.

By Monday’s close, Tesla had recovered about 60% of its feud-related losses. The stock closed Monday at $308.58, up 4.6% for the day after trading as low as $281.85.

The recovery gained steam late Monday after President Trump wished Musk well. Trump also indicated he would be willing to speak with the Tesla CEO.

President Donald Trump on Elon Musk: “We had a great relationship and I wish him well — very well, actually.” pic.twitter.com/FhiZcP4xYw
— ALX 🇺🇸 (@alx) June 9, 2025

Musk appeared to signal support for Trump’s policies regarding Los Angeles protests. He responded to a post from Vice President J.D. Vance with two American flag emojis.

The Tesla CEO also reposted critical comments about California Governor Gavin Newsom that came from the president. These actions suggested the feud might be cooling down.

Tesla shares had closed just above $344 on June 3, the day before the public disagreements began. The stock has now clawed back most of those losses.

Robotaxi Service Set for Austin Launch

Tesla is preparing to launch its robotaxi service in Austin, Texas, within days. Reports suggest the service could debut as early as June 12, though Tesla has not officially confirmed this date.

The autonomous ride-hailing service represents a major milestone for Tesla’s artificial intelligence efforts. Bulls see robotaxis as potentially unlocking a new era of growth for the company.

Wedbush analyst Dan Ives noted that the political drama came at an unfortunate time. The dispute coincided with Tesla’s much-awaited robotaxi rollout.

Despite the timing issues, Wedbush remains confident in Tesla’s autonomous vehicle plans. The firm expects Tesla to expand the service to 20-25 cities within the next year.

Analyst Sees Massive Upside Potential

Ives maintains his Buy rating on Tesla stock with a $500 price target. He believes both Trump and Musk need each other for their respective goals.

The analyst thinks Trump needs Musk to maintain support from the Republican base. Meanwhile, Musk needs Trump’s help to secure federal frameworks for autonomous driving regulations.

Ives highlighted Tesla’s robotaxi push as central to Musk’s vision of an AI-driven future. He views this as a potential turning point for the company.

The analyst estimates Tesla’s AI and self-driving business could be worth over $1 trillion. He sees potential for Tesla to reach a $2 trillion market cap by 2026 if autonomous driving adoption accelerates.

Tesla stock currently trades with mixed analyst sentiment. The stock has received 14 Buy ratings, 12 Hold ratings, and 10 Sell ratings over the past three months.

The average analyst price target sits at $281.77, suggesting potential downside from current levels. This represents a discount of over 8% from Tuesday’s premarket trading price.

Tesla stock remains down about 24% year-to-date despite recent gains. However, shares are up nearly 75% over the past 12 months, showing the stock’s volatile nature and long-term momentum.

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