Musk Signals Truce with Trump, Tesla Stock Rebounds 5%

TradingKey - According to American media sources, Elon Musk has hinted at a willingness to ease tensions following a public fallout with Donald Trump. This development has influenced Tesla's shares to climb over 5% in pre-market trading.

Reports indicate that there have been peacemaking efforts on social media. A user on the X platform responded to Musk's post about SpaceX discontinuing its "Dragon" spacecraft by saying, "This is a shame this back and forth. You are
both better than this. Cool off and take a step
back for a couple days." 

Musk subsequently retracted his previous harsh comments, replying, "Good advice.
OK, we won't decommission Dragon."

Source: Elon Musk (@elonmusk) / X

Furthermore, hedge fund manager Bill Ackman also urged both parties to call a truce: "I support @realDonaldTrump and @elonmusk
and they should make peace for the benefit of
our great country.
We are much stronger together than apart." Musk responded, "You're not wrong."

Source: Elon Musk (@elonmusk) / X

There are already signs of a thaw in their relationship. According to POLITICO, Trump appeared nonchalant during an interview on Thursday, June 5th: "Oh it’s okay." When questioned about the public breakup with Musk, Trump replied, "It’s going very well, never done better."

Additionally, the media reported that White House aides are working to persuade Trump to tone down his public criticism of Musk to prevent further escalation. They have arranged a call on Friday to facilitate reconciliation.

Buoyed by this news, Tesla shares rose over 5% pre-market but have since seen some pullback. 

Previously, on Thursday, Tesla's stock plunged over 14% in a single day, wiping out more than $150 billion in market value.