Trump calls Musk ‘a friend,’ hints to higher auto tariffs

With cooler heads prevailing, Tesla (NASDAQ:TSLA) shares continue to gain traction and were trading in the green for a fifth straight day as the rift between President Trump and Tesla (NASDAQ:TSLA) CEO Elon Musk has begun to heal.

Speaking at the White House earlier on Thursday, Trump called Musk “a friend” and has reopened dialogue with the Tesla CEO after a very public feud last week.

Although Tesla (NASDAQ:TSLA) shares enjoyed a brief pop on the president’s cordial remarks, the stock slipped into the red on Trump’s comments regarding higher auto tariffs and an end to the EV mandate.

According to the president, Musk did not protest the end to the EV mandate. “As long as it happens to everyone, I’ll still be able to compete,” the Tesla CEO reportedly said.

At a bill signing ceremony at the White House, Trump also said auto tariffs may go up from 25% “in the not too distant future…as the higher they go the more likely they’ll build a plant here.” While this triggered a brief knee-jerk reaction in the legacy automakers, shares of General Motors (GM), Ford (F) and Stellantis (STLA) remain more than 1% lower.