Musk’s Trump truce clears path for autonomous ambitions – Wedbush

Whether motivated by the staggering hit to his personal fortune or Tesla’s dependence on a cordial relationship with the U.S. president Tesla (NASDAQ:TSLA) CEO Elon Musk has backpedaled, admitting his comments about President Trump ‘went too far.’

By extending an olive branch, Tesla (NASDAQ:TSLA) stock is building on a three-day winning streak with another 1.7% gain on Wednesday, restoring 23% of Tesla’s market capitalization from its June 5 low.

Was the feud simply a public clash of egos between two high-profile figures, or a calculated move by Musk to distance Tesla from the Trump/DOGE brand?

Since becoming a “special government employee” and taking the thankless task of cutting government waste, Musk watched Tesla (NASDAQ:TSLA) stock fall 52%, dealerships vandalized, public opinion plummet, and even death threats targeting the man who once positioned himself as the savior of the green revolution.

And whether or not it was choreographed or spontaneous, the falling-out was a major overhang on Tesla (TSLA) shares as investors were fearful that Trump in revenge mode would put up regulatory hurdles to Tesla’s (TSLA) autonomous future….as well as for Musk’s other privately held businesses.

“Musk needs Trump and Trump needs Musk,” sums up Wedbush’s Dan Ives, calling this an important step as Tesla (TSLA) plans its Austin robotaxi launch on June 22 and as the AI revolution gains momentum.

“We believe the vast majority of valuation upside looking ahead for Tesla is centered around the success of its autonomous vision taking hold with this key launch in Austin ahead,” Ives said in Wednesday’s note to investors. And a working relationship with Trump is key to getting a federal framework for autonomous off the ground.

And autonomous is pivotal for Tesla (TSLA) to achieve a $2 trillion valuation.

“We believe the march to a $2 trillion valuation for TSLA has now begun in our view with FSD and autonomous penetration of Tesla’s installed base and the acceleration of Cybercab in the U.S. representing the golden goose,” Ives adds.