Tesla Stock Rises Premarket: New Robotaxi Approval, Musk-Trump Reunion Warms Retail Trader Hearts
Synopsis
Arizona becomes Tesla's third state for autonomous vehicle testing, alongside Texas and Nevada.
Tesla Inc. shares rose nearly 1.3% in early premarket trading on Monday, buoyed by bullish retail sentiment as investors weighed fresh developments in its autonomous driving push and a potential political boost.
The company has received approval to begin testing autonomous vehicles with safety monitors in Arizona, Bloomberg reported. Tesla applied for permits from the Arizona Department of Transportation in late June to test and operate self-driving cars, both with and without a driver. Arizona becomes Tesla's third state for autonomous vehicle testing, alongside Texas and Nevada.
Adding to the momentum, U.S. President Donald Trump and Tesla CEO Elon Musk appeared together publicly for the first time since their high-profile fallout earlier this year. The two shared a handshake and a private suite during the memorial service for conservative activist Charlie Kirk. Musk later posted a photo of himself with Trump on X, captioning it: "For Charlie."
Their reunion follows months of tension after Musk blasted Trump's tax-and-spending measure as a "disgusting abomination" for removing EV tax credits, a spat that dented Tesla shares amid fears of regulatory backlash.
Retail traders on Stocktwits welcomed the apparent thaw, with Tesla among the most active stocks by trading volume premarket.
"The market loves a good reunion! Elon and Trump shaking hands and appearing to be on good terms. With their previous feud weighing on the stock, this could be the catalyst to send TSLA soaring on Monday!" one user wrote.
Another added: "Green Day for $TSLA tomorrow," posting a photo of Musk and Trump together.
Tesla shares are coming off their third straight weekly gain, with Stocktwits sentiment at 'extremely bullish' levels amid 'high' message volume. After spending much of the year in the red, Tesla stock is now up 5.5% in 2025.
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