Trump and Musk May Be Ready to Talk Again—Tesla Stock Bounces

​After a dramatic public fallout, President Donald Trump and Tesla CEO Elon Musk may be taking steps to mend their relationship—and Wall Street is reacting fast.

Following a bitter exchange over Trump’s “Big Beautiful Bill” spending package— which Musk had blasted as a “disgusting abomination”—Tesla shares plunged 14% on Thursday, marking their steepest one-day drop since March. Trump responded by threatening to cancel federal contracts tied to Musk’s companies.

But the tone shifted quickly. White House staffers have scheduled a call with Musk to de-escalate the situation, and Musk himself appeared ready to cool off, responding to an X follower’s advice to "take a step back for a couple of days" with: “Good advice. We won’t decommission Dragon.”

The news of potential talks helped Tesla stock rebound more than 4% in premarket trading on Friday, clawing back some of Thursday’s losses .

Still, not everyone is convinced the damage is done. Former Tesla bull Ross Gerber called the feud a “disaster” for Musk and predicted potential shareholder lawsuits against Tesla’s board over the stock’s sharp drop. "The way you protect yourself is by selling stock," Gerber said, revealing that he had sold some of his Tesla shares in response to the turmoil .

Meanwhile, Musk’s net worth took a hit, dropping nearly $34 billion in a single day, though he remains the world’s richest individual.

​Bottom line: The Trump-Musk relationship may be moving back toward detente—but the market and Tesla shareholders will be watching closely to see whether the truce holds, or whether more volatility lies ahead.