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Tesla shares are up as Politico reports that Musk and the White House will hold a call

Tesla shares recovered from their previous session on Friday after Politico reported White House aides had scheduled a phone call with Elon Musk, CEO, to ease tensions, following a public spat with U.S. president Donald Trump.

In premarket trading, shares of the EV manufacturer were up 4.7% to $298.1. The stock fell 14.3% on Thursday, and the market lost approximately $150 billion - this is the largest one-day loss in value ever.

Musk said that Trump should be impeached while Trump threatened to stop government contracts for Musk's businesses. Their relationship turned into a social media brawl.

Fiona Cincotta is a senior analyst at City Index. She said that Trump's threats to end Tesla's subsidies and contracts are unlikely.

I don't think this will escalate into something more than a few days of a verbal war.

Trump criticised Musk's CEO in the Oval Office. The once close relationship deteriorated in public within hours as Musk and Trump exchanged insults about their respective companies, Trump's Truth Social, and Musk's X.

(source: Reuters)