Investors fear that the dispute between Elon Musk and President Donald Trump "will stop their friendship and change the regulatory environment for Tesla on the autonomous front over the coming years under the Trump administration,

Wall Street's stock indexes ended lower on Thursday in choppy trade as a slump in Tesla shares offset news of progress in tariff talks between U.S. President Donald Trump and Chinese leader Xi Jinping.

Tesla stock rebounded Friday as investors looked for signs of a deescalation of the feud between CEO Elon Musk and President Trump.

Live Updates Live Coverage Updates appear automatically as they are published. Tesla Shares Up 3.9% in Premarket Trading 8:51 am by Eric Bleeker Tesla shares are up 3.9% as of 8:50 a.m. ET in premarket trading.

The relationship between Elon Musk and President Donald Trump appears to have entered a new phase of pronounced tension and public disagreement.

Year to date, Apple ( AAPL -0.14%) and Tesla ( TSLA -3.21%) have been the two worst-performing "Magnificent Seven" stocks, notching losses of 19% and 15%, respectively. But Wall Street expects Apple shares to rebound in the coming months while Tesla shares fall even further, as detailed below:

After soaring in 2023 and 2024, shares of Tesla (NASDAQ:TSLA) was battered throughout Q1 2025. But since the start of Q2, the largest U.S. EV-maker has seen its shares bounce back nicely. After falling by 41.

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U.S. stock index futures extended gains on Friday after a stronger-than-expected jobs report calmed worries over the health of the labor market in the wake of President Donald Trump's tariff war. A Labor Department report showed nonfarm payrolls increased 139,