Tesla Inc (NASDAQ:TSLA) is poised to benefit from renewed ties between CEO Elon Musk and US President Donald Trump, Wedbush Securities said Tuesday, after Musk apologized on social media for his recent criticism of Trump.
“I regret some of my posts about President Trump last week, they went too far,” Musk wrote early Tuesday on X, the social media platform he owns.
I regret some of my posts about President @realDonaldTrump last week. They went too far.
— Elon Musk (@elonmusk) June 11, 2025
The move is seen by Wedbush as a critical step in easing tensions between the two influential figures, whose public fallout has cast a shadow over Tesla’s outlook, particularly around its autonomous vehicle ambitions.
“This is an important step with Musk apologizing for some of his back and forth with Trump that started this battle between the former BFFs,” said Wedbush analyst Dan Ives in a note. “As we said this week, Musk needs Trump and Trump needs Musk.”
While a full reconciliation may not be imminent, Ives said he expects the two to “slowly mend the fences” in the coming months, aided by intermediaries. “Trump needs Musk to stay close to the Republican party and Musk needs Trump for many reasons including a green light on a federal framework for autonomous.”
The timing of Musk’s apology comes as Tesla prepares to unveil its long-awaited robotaxi project in Austin on June 22. Originally slated for June 12, the launch has been delayed slightly, but remains a “major endeavor” for the electric vehicle maker, according to Ives.
“We believe over the coming year we will see robotaxi deployed in 20 to 25 cities in the US,” he wrote. “The Trump feud is not getting in the way of this in our view.”