How will Tesla stock fare today following yesterday's bloodbath due to Musk-Trump feud

Tesla share price rose 4.2 per cent in premarket trading on Friday after plunging about 15 per cent on Thursday following US President Donald Trump's public feud with automaker's CEO Elon Musk, including threats to cut off government contracts with Musk's companies. Shares of the electric carmaker rebounded on signs of cooling tensions between Musk and Trump.

Tesla shed about $150 billion in market value on Thursday, weighing on Wall Street indexes. White House aides scheduled a call between Trump and Musk for Friday, Politico reported, likely to ease the feuding after an extraordinary day of hostilities.

Tesla shares, which hit record highs when Trump won the election in November, have since been punished harshly, as Musk's cost-cutting role in the U.S. administration hurt Tesla's image with shareholders and consumers alike.


The stock is still considered part of Wall Street's elite "Magnificent 7" club of the seven biggest companies by market cap, even though it has now dropped to ninth position in terms of value, behind Warren Buffett's Berkshire Hathaway and Broadcom. It has also dropped out of the $1-trillion club of companies with market value above this level.

Meanwhile, traders raked in $4 billion in profit from their short positions in Tesla shares on Thursday after the public feud between Trump and Musk led to the biggest single-day drop in market value.

The gains from betting against the EV maker were the second biggest, data from analytics firm Ortex showed. Traders had pocketed $5.4 billion from a selloff on September 8, 2020, after the firm was looked over for inclusion into the S&P 500 index.

With short sellers up $7.5 billion on their bet against Tesla, it remains the most profitable trade for the bearish investors among the "Magnificent 7" stocks this year. Apple stands second at $7.3 billion, according to Ortex.

FAQs

Q1. Who is CEO is Tesla?
A1. Tesla CEO is Elon Musk.

Q2. How much shares Tesla shed in market value?
A2. Tesla shed about $150 billion in market value on Thursday.