Assessing The Fallout of The Trump Musk Spat and Its Impact On Tesla

🌟🌟🌟The recent public clash between President Donald Trump and Elon Musk has thrust both men into the spotlight in ways that overshadow mere market noise.  Investor sentiment has been thrown into disarray following Musk's pointed criticism of Trump's "One Big Beautiful Bill" calling it a "disgusting abomination".  Trump said he was "disappointed" in Elon Musk and said that Musk is not happy with the bill mainly because it proposes elimination of the EV credits that have long been an advantage for Tesla.  

Trump has also posted on Truth Social "The easiest way to save money in our Budget, Billions and Billions of Dollars is to terminate Elon's Governmental Subsidies and Contracts." 

Tesla $Tesla Motors(TSLA)$  fell a huge 14% on Thursday trading and in the past 5 days, it has now tumbled by almost 20%.  Tesla is now down 24.9% year todate but is still up 62% in 2024.  Tesla has also lost its USD 1 Trillion market capitalisation and is now worth USD 916 billion. 

Wall Street Analysts are Mixed on Tesla

Jed Dorsheimer, a William Blair analyst is bullish on Tesla primarily because  Elon Musk has already confirmed plans of staying at the helm for another 5 years.  He also expressed confidence that Tesla's upcoming Robotaxi launch will drive Tesla's share price up further for the 2nd half of 2025.

In contrast Ryan Brinkman, a JP Morgan Analyst  is Bearish on Tesla as he has cut his estimate for global Tesla deliveries in Q1 to 355,000 vehicles, down from 444,000.  He wrote that he struggled to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly. 

Overall the consensus is a Hold rating, the Average Target price is  USD 282.70, which is just 2% above Tesla's last closing price.  This is according to 37 Wall Street Analysts surveyed by Tipranks. 

Diverging Perspectives

Investors are now at a crossroads where caution meets opportunity. 

The Positive Views are:

Innovative Edge :  Tesla's leadership in electric vehicles, autonomous driving technology and AI positions it well for the future.  Upcoming initiatives like the much anticipated Austin based launch of the Robotaxi program, and Tesla Bot, are seen as potential game changers that could redefine  the EV landscape. 

Execution Capability :  Despite its high valuation, Tesla's operational efficiency and Elon Musk's track record for pushing technological boundaries suggest that Tesla can continue to deliver significant breakthroughs in the field.

In contrast the Negative Views are :

Political and Public Relations Risks :

Elon Musk's unpredictable behaviour and his public spats, such as the recent clash with Trump, could alienate investors and regulators alike.  These political entanglements might increase operational and reputational risks. 

Market Overvaluation Concerns :

Critics highlight that Tesla's stock may already be trading on high expectations.  There are underlying issues such as sales slowdowns in key markets like Europe and China,  suggesting that the current premium is not justified by its fundamentals. 

Weighing the Risks and Catalysts

For investors, the decision to hold or buy Tesla stock now hinges on balancing short term volatility against its long term potential :

Catalysts for Growth  - Proponents argue that if Tesla successfully rolls out its autonomous driving features and scales its energy solutions, these innovations could more than offset the temporary market jitters.  Moreover, deepening market penetration and continued investments in battery technology could provide a robust growth trajectory. 

Risks of Continued Volatility -  In contrast, persistent political fallout or further public controversies could jeopardise investor confidence, or trigger regulatory scrutiny and add to Tesla's risk premium.  This situation makes it crucial for investors to monitor both the company's strategic moves and broader market sentiments around Elon Musk's high profile Tech leadership. 

Concluding Thoughts - The Investor's Dilemma

So is Tesla still a Buy After Trump Elon spat? 

The answer largely depends on an Investor's risk appetite and long term outlook. 

For those with a high tolerance for volatility and a belief in transformative technology, Tesla's recent dip might represent a strategic buying opportunity at a discount. 

However more risk averse investors might reconsider their exposure until there is a clearer evidence that the political and market risks have abated. 

Ultimately, while Tesla remains a Titan in the EV space, its future success may hinge on reconciling high expectations with the realities of political and operational challenges.  The recent events are a stark reminder that in today's market, Tesla's technological promise is as intertwined with Elon Musk's leadership and public persona as it is with its financials. 

@Daily_Discussion  @TigerStars  @Tiger_comments  @Tiger_SG  @CaptainTiger  @TigerClub  

# πŸ’° Stocks to watch today?(3 July)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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  • Kristina_
    Β·06-06
    TOP
    Honestly, this is peak Tesla drama β€” classic Elon chaos meets political fireworks. πŸ˜… But long term? Still bullish. Robotaxi, AI, and energy play are massive. Short-term dip looks scary, but for tech believers, it might just be a golden entry point. Holding tight πŸš€
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    • koolgal
      All The Best πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Have a wonderful weekend ahead πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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    • koolgal
      It is certainly a golden opportunity to buy more Tesla πŸš€πŸš€πŸš€πŸš€πŸŒ›πŸŒ›πŸŒ›πŸ’°πŸ’°πŸ’°
      06-06
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  • 1PC
    Β·06-06
    TOP
    Nice Sharing 😊. GF BF also has drama along the way, let alone " Partners " [Chuckle]. The 2 Best Actors know how to entertain the audience, Enjoy the drama & get Ready to Buy or Sell [Chuckle] [Chuckle] [Chuckle]. @Shyon @Shernice軒嬣 2000 @Barcode @JC888 @yourcelesttyy
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    • koolgal
      Best of luck πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Enjoy your weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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    • koolgal
      Happy Trading πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
      06-06
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  • ZhongRenChun
    Β·06-07
    TOP
    they won't cut oil and gas subsidies,  nor cut military spending.  but they will cut subsidies for EV, spaceX contracts.  absolutely disgusting.   I don't know why Musk wastes his time with America.   I would have immigrated to China or Canada.  USA is a lost cause.  if they don't even respect Musk, they won't respect Anyone!
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    • koolgal
      However he has too much at stake in the US.
      06-08
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    • koolgal
      Musk's government contracts are in jeopardy.
      06-08
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    • koolgal
      May you have a winning week ahead πŸŒˆπŸŒˆπŸŒˆπŸ’°πŸ’°πŸ’°
      06-08
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  • Merle Ted
    Β·06-06
    TOP
    Tesla will never see $300 again.. going against Trump bully is not an easy thing
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    • koolgal
      Best of luck πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Have a wonderful weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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    • koolgal
      Thanks for sharing your valuable insights πŸ₯°πŸ₯°πŸ₯°
      06-06
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  • Enid Bertha
    Β·06-06
    TOP
    Back to 350 easy money
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    • koolgal
      All the best πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Happy weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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    • koolgal
      Thanks for sharing your valuable insights πŸ₯°πŸ₯°πŸ₯°
      06-06
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  • Juliaaa11
    Β·06-06
    TOP
    Thanks for the analysis
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    • koolgal
      All the best πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Have a wonderful weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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    • koolgal
      My pleasure 😍😍😍
      06-06
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  • icycrystal
    Β·06-06
    TOP
    thanks for sharing
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    • koolgal
      Best of luck πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Happy weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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    • koolgal
      Appreciate your support πŸ₯°πŸ₯°πŸ₯°
      06-06
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  • Mangoman
    Β·06-07

    Great article, would you like to share it?

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    • koolgal
      Best of luck πŸ€πŸ€πŸ€
      06-08
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    • koolgal
      Happy Sunday πŸ–οΈπŸ–οΈπŸ–οΈ
      06-08
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    • koolgal
      Thanks 😍😍😍
      06-08
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  • WaiSoon
    Β·06-06
    Great article, would you like to share it?
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    • koolgal
      All the best πŸ€πŸ€πŸ€
      06-07
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    • koolgal
      Happy weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-07
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    • koolgal
      Thanks 😍😍😍
      06-07
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  • snoozii
    Β·06-06
    Kinda tricky
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    • koolgal
      Elon Musk has signaled he is cooling off on his rhetoric.
      06-06
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    • koolgal
      Best of luck πŸ€πŸ€πŸ€
      06-06
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    • koolgal
      Happy weekend πŸ–οΈπŸ–οΈπŸ–οΈ
      06-06
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