Wedbush analyst Dan Ives has predicted a weak performance for Tesla Inc. due to the strained relationship between CEO Elon Musk and President Donald Trump. This prediction comes after a public fallout between the two, with Trump recently criticizing the subsidies Musk’s companies receive.
What Happened
Ives posted his prediction on social media, describing the situation as a “junior high school friendship gone bad.” However, he added that the situation would eventually stabilize, stating:
At the end of the day Musk needs Trump and Trump needs Musk. Will settle down.
Background
The relationship between Musk and Trump has been a topic of interest recently. Trump has been vocal about the subsidies Musk’s companies receive, suggesting that without them, Musk would have to “close up shop and head back home to South Africa.” This public criticism has had an impact on Tesla’s stock, with the company’s stock falling by nearly 5% during a recent pre-market session.
Impact on Tesla’s Stock
Musk’s response to Trump’s spending bill also reignited political comeback rumors, further affecting the stock. Investment advisor Ross Gerber criticized Tesla’s board for remaining silent amid the Trump-Musk feud and the federal subsidies. He suggested that Musk’s enabling of Trump’s presidency would eventually lead to a power struggle.
Key Points
- Tesla’s stock decline is linked to the souring of the Trump-Musk relationship
- Analyst Dan Ives predicts a weak performance for Tesla due to the feud
- The situation is expected to stabilize eventually
- Trump’s criticism of subsidies received by Musk’s companies has impacted Tesla’s stock
- Investment advisor Ross Gerber criticized Tesla’s board for remaining silent amid the feud
Conclusion
The feud between Musk and Trump is having a significant impact on Tesla’s stock. While the situation is expected to stabilize eventually, the current decline in stock price is a cause for concern for investors. As the relationship between the two continues to evolve, it will be important to monitor its impact on Tesla’s performance.