Did Musk Just Extend An Olive Branch To Trump? Tesla CEO Says POTUS ‘Resolved Several Serious Conflicts’ After News Of Israel-Gaza Ceasefire

After another round of caustic social media exchanges between President Donald Trump and Elon Musk, the Tesla CEO appears to have taken the first step to keeping things calm.

Trump posted about a potential ceasefire between Israel and the Islamic extremist group Hamas late Tuesday, signaling that Qatar and Egypt were working behind the scenes to hash out the truce terms.

Musk reposted the president’s Truth Social post regarding the same on his X account. Tagging Trump, the billionaire said, “Credit where credit is due.”

He also added that “@realDonaldTrump has successfully resolved several serious conflicts around the world.”

Trump claimed that he employed trade threats to avert an escalation in tensions between India and Pakistan when they were at loggerheads with each other in early May.

India’s External Minister Jaisankar, however, refuted the claim, stating that he was in the room when Prime Minister Narendra Modi spoke with Trump over the phone.

When Israel attacked Iran in mid-June, citing nuclear threats, and the two Middle East nations launched strikes against each other, Trump negotiated a ceasefire between the nations.

Musk's appreciative post for Trump may bring a thaw in the frosty relationship between the on-and-off friendly duo.

On Tuesday, Trump ramped up his attack on Musk, telling a reporter that his administration would have to direct the Department of Government Efficiency (DOGE) to look into the billionaire entrepreneur's businesses. "You know what DOGE is? The monster that might have to go back and eat Elon. Wouldn't that be terrible? He gets a lot of subsidies."

"So tempting to escalate this. So, so tempting. But I will refrain for now," Musk posted in response.

However, the Tesla CEO still expressed dismay over the president's remarks. "Just plain wrong. So disappointing," he replied to a screenshot of Trump's earlier post.

Following the exchanges, Tesla stock posted its worst session in nearly a month on Tuesday. However, Wednesday’s early premarket movement suggests a rebound.

On Stocktwits, retail sentiment toward the stock was ‘bearish’ (34/100) by early Wednesday, with the message volume being 'high.'

The trigger for the recent escalation has been Tesla CEO’s antagonistic stance against Trump’s “one big beautiful” tax bill, which has since then passed the Senate. Trump warned that the cancellation of EV federal tax credits could put Musk’s business in jeopardy, potentially forcing him to return to his home country of South Africa.

Traders also look ahead to Tesla’s second-quarter deliveries update, which is likely to be released ahead of the market open. Expectations are muted amid challenging macroeconomic and industry conditions.

For the year-to-date, Tesla stock has lost over 25% versus the 6% gain for the SPDR S&P 500 ETF (SPY), an exchange-traded fund that tracks the S&P 500 Index. The tech-focused  Invesco QQQ Trust (QQQ) ETF is up over 7%.

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