Tesla stock was up in early trading Friday, rebounding from a steep drop on Thursday after Reuters reported that President-elect Donald Trump plans to reduce or eliminate the electric-vehicle purchase tax credit,

The $7,500 tax credit for buyers of electric vehicles could be vanishing early in the new Trump administration, but that might actually be good news for Tesla and its CEO Elon Musk, one of President-elect Donald Trump’s most prominent backers.

When former President Donald Trump campaigned on a promise to end the $7,500 electric vehicle tax credit, many people pointed to his newfound close ties with Tesla CEO Elon Musk as proof that he wouldn't really act to deliberately harm America's nascent EV sector.

Thursday, Jefferies analyst Philippe Houchois raised his price target on Tesla stock to $300 from $195 but kept his Hold rating on shares.

Elon Musk joined Trump on Capitol Hill for a meeting with Republicans—and the president-elect used the opportunity to ridicule the richest man in the world. Goldberg's birthday episode also included the return of the Wind Machine of Chaos and her face on a giant wheel of cheese.

A new report suggests that President Trump will attempt to scrap the $7,500 EV tax credit when he returns to the White House next year. Tesla is said to back the move, with its CEO, Elon Musk, being a huge Trump supporter.