Tesla (NASDAQ:TSLA) shares are experiencing a premarket surge this Tuesday, adding to gains of over 8% in the past two trading sessions.
The rebound follows a turbulent period last week marked by a public dispute between CEO Elon Musk and President Donald Trump, which saw Tesla's stock plunge nearly 15%.
The current upturn signals a renewed investor focus on the electric vehicle giant's anticipated launch of its robotaxi service in Austin, Texas, potentially as early as this week.
The prospect of this new venture appears to be outweighing recent concerns stemming from the high-profile political friction.
This rise in share price comes despite some negative sentiment from financial analysts who had linked Tesla's stock performance to Musk's relationship with Trump rather than the company's underlying fundamentals.
Notably, analysts from Argus Research and Baird, while still viewing Tesla as a long-term favorite, recently downgraded their ratings to "hold" amidst the volatility.
The public spat erupted last week after Elon Musk publicly opposed Trump’s "Big, Beautiful" taxation-and-spending bill.
Trump, in turn, accused Musk of doing so for reasons connected to his various businesses.
The escalating tension culminated in Trump stating on Saturday that he assumes his relationship with Musk is "over."
Despite the recent premarket gain of 2% today, Tesla shares remain down by more than a fifth so far this year as of Monday's close.
Investors will be closely watching for further developments on the robotaxi launch as Tesla navigates both market expectations and the lingering effects of its CEO's political engagements.