To The Moon

Tesla Caught in the Crossfire: How the Trump–Musk Feud Could Rattle $TSLA in the Coming Weeks

Tesla Inc. ($TSLA) is under heavy pressure—not just from market forces or global instability, but from a rapidly escalating personal and political feud between its CEO Elon Musk and former U.S. President Donald Trump. What started as subtle jabs has now turned into a high-stakes political standoff with billions of dollars—and investor confidence—on the line.

Here are three key ways this feud could shape Tesla’s stock trajectory in the next 30 days:

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1. Trump’s Retaliation Threatens Tesla’s Federal Lifelines

The feud exploded when Elon Musk publicly opposed a GOP-backed tax bill, labeling it detrimental to clean energy initiatives and middle-class EV adoption. In response, Trump accused Musk of “biting the hand that feeds him” and has publicly threatened to cut all federal contracts and subsidies benefiting Tesla and SpaceX.

These are not empty threats:

• Tesla has previously benefitted from EV tax incentives and infrastructure credits.

• SpaceX, Musk’s other company, holds billions in government contracts, particularly with NASA and the Pentagon.

If Trump follows through—and he regains significant political traction—Tesla could lose critical federal support, which would directly impact profitability and future product rollout plans. Investors are pricing in that risk, hence the recent selloff.

2. Perception and Political Risk Are Now a Direct Threat to Valuation

Tech companies often rise or fall based on public perception. But few CEOs are as tied to their company’s identity as Elon Musk is to Tesla. Trump’s campaign to publicly humiliate Musk—calling for investigations, threatening legal probes, and rallying supporters—has shifted public attention from Tesla’s fundamentals to its politics.

This introduces a new kind of risk:

• Political volatility risk—Tesla’s valuation may now fluctuate based on political headlines rather than business metrics.

• Institutional hesitation—Funds wary of political fallout may reduce Tesla exposure temporarily, especially if anti-Musk sentiment grows in Washington.

3. Short-Term Technical Damage Is Clear, but Not Irreversible

Tesla has dropped four straight days, down over 14%—while other mega-cap tech stocks like Microsoft continue hitting all-time highs. This divergence is rare and underscores that Tesla’s current slump is not macro-related—it’s Musk-related.

Despite this:

• RSI is nearing oversold territory (~30), suggesting a potential technical bounce.

• Key support near $275 could act as a floor if sentiment stabilizes.

The short-term pain may not reflect long-term fundamentals, but in the current news cycle, perception outweighs reality.

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When Could the Market Recover—and When Could $TSLA?

Market-wide, broader indices may recover sooner, particularly if trade tensions cool or rate cuts resume in Q3. But Tesla’s recovery hinges more narrowly on:

• The feud de-escalating publicly (even a simple ceasefire in rhetoric could help).

• Reassurance that Tesla’s government contracts and subsidies remain intact.

• Earnings or delivery numbers in July showing resilience despite political headwinds.

Look for signs of political resolution—or Musk shifting media focus back to innovation—to gauge when the stock might rebound.

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Wait for the Dust to Settle

For those eyeing an entry in $TSLA, timing and confirmation are everything. Jumping in early could result in catching a falling knife.

Suggested swing trader checklist:

• ✅ Bullish reversal candle off $275 with volume spike

• ✅ RSI rebounding from oversold territory

• ✅ MACD bullish crossover on 4H or daily chart

• 🚨 Monitor for headlines: political tensions must cool, even temporarily

Verdict:

⏳ Wait for confirmation. A technical setup aligned with reduced political noise could offer a high-reward entry. Until then, stay defensive.

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If the feud lingers into Q3 earnings, Tesla may continue underperforming the tech sector—a rare but potentially lucrative setup for those patient enough to wait for a signal, not a guess.

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