### Tesla Shares Rebound After Tumultuous Week Amid Musk-Trump Feud

Tesla shares saw a notable jump of over 5% on Friday before ultimately settling with a 3.7% gain at $295.14. This comes on the heels of a significant downturn on Thursday, where the company experienced a massive $152 billion loss in market value following a public clash between CEO Elon Musk and President Trump. Investors initially hoped for a possible reconciliation, yet Trump dismissed any notion of mending the rift, questioning Musk's mental stability during an interview with ABC News.

The fallout from the feud hit Tesla hard, resulting in its worst single-day decline in over four years. Despite this, Elon Musk, who remains the world's richest individual with a net worth of $395.8 billion according to Forbes, suffered a personal loss of approximately $27 billion. Musk's bold claim that Trump owed his election victory to Musk's support provoked Trump into threatening Tesla's government contracts.

Tesla short sellers capitalized on the turmoil, amassing $4 billion in profits on Thursday—their largest single-day gain to date. Over the course of the year, betting against Tesla has netted short sellers a total of $7 billion. With Tesla currently ranking as the second most shorted stock in the US, these investors have found opportunities amid the volatility.

Analysts like Dan Ives from Wedbush Securities suggest that a renewed relationship between Musk and Trump could provide much-needed relief for Tesla shares. The company faces legislative challenges, particularly with the Trump-backed spending bill threatening to eliminate EV tax credits valued at up to $7,500 per buyer. This could potentially slash Tesla's annual profit by $1.2 billion, according to JPMorgan analysts.

Moreover, the Senate's movement to block California's EV sales mandates poses an additional threat, potentially removing another $2 billion from Tesla's sales. Combined, these legislative measures could wipe out about half of Tesla's anticipated $6 billion in earnings before interest and taxes for the year, as per a JPMorgan report.

Tesla's sales have been suffering in major European markets, with Chinese competitor BYD surpassing Tesla in several countries. The brand's image has taken a hit domestically as well, with protests erupting against Musk's role in advocating for spending cuts affecting the Department of Education and the US Agency for International Development. Some Tesla showrooms and vehicles were vandalized or set ablaze as part of these demonstrations.

Despite the recent turbulence, Tesla's partial stock recovery on Friday offers a glimmer of hope for investors as they await further developments in the Musk-Trump saga and its broader implications for the electric vehicle industry.