Tesla's fundamentals remain strong despite political drama; the recent dip is a buying opportunity for long-term investors. CEO Elon Musk's pivot away from President Trump could realign Tesla's brand with its original, liberal-leaning customer base, providing a positive catalyst. Political risks, including potential subsidy removal, are likely already priced in; product quality and innovation will drive long-term value.
Tesla's stock is driven by sentiment, which has soured greatly. Plus, Musk has now alienated Republicans and Democrats alike.
Elon Musk has never been shy about his disdain for big government. And yet, many of Musk's companies have thrived thanks to government subsidies, tax credits, and federal contracts.
Tesla, Inc.'s Q1 revenue fell 9% YoY to $21.3B, with operating income plunging 66% amid ASP pressure and factory upgrades. Energy and Services segments surged to 27% of total revenue, driven by 67% YoY growth in Energy Storage to $2.73B. Political backlash from Trump's threats exposed strategic risk across Musk's empire, triggering a 14% drop in the TSLA share price.
Donald Trump and Elon Musk have been exchanging increasingly heated comments at each other on social media after Musk called Trump's new tax bill a ‘disgusting abomination.
Cracks in the relationship between President Donald Trump and Tesla CEO Elon Musk, his self-proclaimed “first buddy,” are scaring Tesla shareholders as the two fired salvos at each other in increasingly heated rhetoric on Thursday.
The most powerful man in the world and the richest man in the world finally turned on each other.
TSLA slipped 14.3% on June 5 due to Musk-Trump tensions, casting doubt on federal support and investor faith. Single-stock ETF TESL lost only1.9% due to downside protection.
Tesla Inc. (NASDAQ: TSLA) dropped 14% in a single day yesterday, representing one of its most significant one-day falls in the past few years. The stock currently trades at around $285, significantly down from peaks exceeding $350 in 2024 — resulting in a loss of over $150 billion in market capitalization.
TSLA tumbled 14.3% on June 5 as a public clash between Trump and Elon Musk rattled markets and boosted ETFs like TSLZ, SMCZ, AGQ, KORU and MULL on Jun 5.
Dan Ives, Global Head of Tech at Wedbush, defends Tesla's long-term value despite Musk-Trump tensions. Sarah Kunst of Cleo Capital warns regulatory risks could hurt Tesla, SpaceX, and investor faith.