Trump and Musk Are Fighting Again. What Does That Mean for Tesla Stock?

Tesla (TSLA) shares fell by more than 5 % on Tuesday after president Donald Trump reiterated his threat to eliminate all support to companies owned by CEO Elon Musk.

Without these subsidies, “Elon will have to close the store and return to South Africa … and our country will save a fortune,” he wrote last night in a post on social media.

Trump’s aggressive comments shortly after the billionaire is directed to the draft law on his spending again. Including today’s decrease, Tesla shares decreased by almost 20 % against its highest level in three months.

Musk has already responded to Trump’s comment with a bold comment, “I literally say cut everything. Now.” A statement on its social media platform X.

However, removing federal benefits can already lead to a major blow to TSLA shares.

In fact, some estimates indicate that the annual auto -making profit can urge more than a billion dollars in this scenario, making their vehicles less competitive in terms of price.

In addition, the ongoing publications with the American president also raises organizational risks, especially since the EV maker pays robots and independent technology that require federal approvals.

Tesla Stock slides on Tuesday because investors are concerned that Musk’s challenging response will escalate tensions – which makes sustainable growth a gradual challenge for the company.

In the wake of the Musk-TROMP runner and the expected weakness in the delivery of Tesla Q2, Dan Levy, Barclays analyst, recommends with caution in EV stock.

Although the successful company for Robotaxi services last month, Levy believes that the weakness in delivery numbers on Wednesday, July 2 may lead to the continued recession in TSLA shares.

Parklise maintained its “Hold” classification on Tesla shares this morning with the price of $ 275, indicating the probable negative side by another 6 % of the current levels.

Wall Street recommends if you are careful in buying Tesla shares here as well, given the category of consensus on “Hold” only.

Analysts enjoy average of $ 297 on TSLA – almost in line with the price that is traded at the time of writing this report.