KEY TAKEAWAYS
- Tesla shares are rising in premarket trading Tuesday after gaining more than 8% over the past two sessions in the wake of last week’s public spat between CEO Elon Musk and President Trump.
- The gains signal that investors are increasingly looking forward to Tesla’s expected launch of its robotaxi service in Austin, Texas, as soon as this week.
- Tesla shares are rising 2% in premarket trading Tuesday but are down by more than a fifth so far this year entering Monday.
Tesla (TSLA) shares are rising in premarket trading Tuesday after gaining more than 8% over the past two sessions in the wake of the public spat between CEO Elon Musk and President Trump last week.
The gains signal that investors are increasingly looking forward to Tesla’s expected launch of its robotaxi service in Austin, Texas, as soon as this week.
The stock’s rise is bucking negative views from analysts who see Tesla shares as affected by Musk’s relationship with Trump over the EV maker’s fundamentals. Analysts from Argus Research and Baird said that Tesla is still a favorite stock for the long term but downgraded their ratings to “hold” for the time being.
Musk has publicly opposed Trump’s “Big, Beautiful” taxation-and-spending bill, while Trump has accused Musk of doing so for reasons connected to his businesses. The friction triggered a sharp selloff in Tesla shares, which plunged almost 15% last week. Trump on Saturday said he assumes his relationship with Musk is over.
Tesla shares are rising 2% in premarket trading Tuesday but are down by more than a fifth so far this year entering Monday.
CORRECTION-June 10, 2025: This article has been corrected to fix the percentage of Tesla shares in the last two sessions.
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