Tesla Inc., the EV giant, is struggling to regain its momentum. According to Craig Irwin of Roth Capital Partners, the growing rift between CEO Elon Musk and President Donald Trump could complicate the company’s push into autonomous vehicle regulation.
What’s Happening
Irwin warned that the removal of electric vehicle subsidies, which Musk had previously stated he was “okay” with, could strengthen Tesla’s position by forcing legacy automakers to pull back. However, looking ahead, he noted that federal support remains key for autonomous driving technology, and political relationships could make all the difference.
Key Points
- Tesla’s position in the market could be strengthened by the removal of electric vehicle subsidies
- Federal support is crucial for autonomous driving technology
- Political relationships between Musk and Trump could impact regulatory priorities
The Feud
The feud between Musk and Trump reignited this week, with Musk publicly criticizing Trump’s “Big, Beautiful Bill,” calling it “political suicide,” “utterly insane,” and “destructive.” Trump hit back, saying that Musk is one of the biggest recipients of subsidies and that without it, he “would probably have to close up shop and head back home to South Africa.”
Impact on Tesla Shares
Tesla shares were down 5.34% on Tuesday, trading at $300.71, due to the feud. However, they’re up 1.05% after hours. Despite the policy risk, Irwin said he would consider buying Tesla shares on the dip, citing potential updates around Level 4 autonomy and the humanoid Optimus robot in the upcoming earnings call.
Why It Matters
Irwin’s comments come amid the reigniting of the feud between Musk and Trump. The feud could impact regulatory priorities like autonomy, which is crucial for Tesla’s autonomous driving ambitions. Musk needs to take a step back and rethink what he says, as his relationship with Trump deteriorates.
Price Action
Tesla shares have a favorable price trend in the medium and long terms, but not so much in the short term. The company’s shares are volatile, and investors should be cautious when making investment decisions.
Conclusion
The feud between Musk and Trump could have significant implications for Tesla’s autonomous driving ambitions. Investors should keep a close eye on the situation and consider the potential risks and opportunities. With the upcoming earnings call, Tesla shareholders are eagerly awaiting updates on the company’s progress and future plans.