01:48 PM EDT, 06/11/2025 (MT Newswires) -- Tesla (TSLA) stands to benefit from a reconciliation between Elon Musk and President Donald Trump as the electric vehicle maker prepares to launch its Robotaxi service later this month, Wedbush Securities said in a client note Wednesday.

In an early morning post on social media platform X, the EV maker's chief executive expressed regret over his recent criticism of the US leader. His posts "went too far," Musk said.

The two got into a bitter online feud last week over the Trump administration's proposed tax bill. Musk is "upset" about the elimination of electric vehicle credits, CNBC reported Thursday, citing Trump. "I'm very disappointed in Elon," Trump reportedly told reporters at the White House. "I've helped Elon a lot."

Musk said on X at the time that Trump would have lost the presidential election without his support. Trump suggested terminating subsidies and government contracts awarded to Musk.

"Watching the former (best friends forever) turn against each other has been an overhang on shares of Tesla as investors are looking ahead and fearful that Trump in revenge mode will make it more difficult for an autonomous future with Tesla front and center," Wedbush analyst Daniel Ives wrote.

Tesla is tentatively expected to launch its Robotaxi service on June 22, Musk said on X.

"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," Ives said. "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."

While returning to pre-feud ties may not be possible at this point, Ives said he would not be a surprised to see Trump and Musk "slowly mend the fences" over the coming months.

Shares of Tesla were up 1% in afternoon trading on Wednesday. The stock has rallied about 16% since last Thursday, when it tumbled 14% amid the Trump-Musk spat.

Wedbush is maintaining its outperform rating on the stock with a price target of $500.

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