Tesla Retail Traders Rattled As Musk‐Trump Feud Sends Stock Tumbling: Analysts Weigh In On Political Fallout

Tesla Inc. (TSLA) shed 14.8% last week, its worst weekly loss since October 2023, as a public spat between CEO Elon Musk and President Donald Trump spooked investors and intensified political uncertainty around the EV giant.

The feud erupted after Musk slammed Trump's hallmark“Big Beautiful” tax bill as a“disgusting abomination,” potentially threatening $7,500 EV tax credits that benefit Tesla buyers. 

Trump fired back over the weekend, telling NBC News that his relationship with Musk is irreparable and warning of "serious consequences" if the billionaire entrepreneur backs Democratic challengers.

Retail sentiment has plunged as well. As of late Sunday, Stocktwits sentiment for TSLA sentiment was 'extremely bearish' (12/100) - the lowest score since March. 

Message volume more than doubled over the past week as users intensely debated the fallout.

“Remember, before the elections, it was a $200 stock. It went to $400 and beyond as Elon was seen as the second most powerful guy in the administration with vast control over government policies,” said one user.“Now, not only is the brand damaged, Elon has permanently lost power and influence too. $TSLA could fall below $200.”

“$TSLA Robotaxi launch will probably be a disaster, that is if it even happens this week,” said another.

A Stocktwits poll that garnered responses from nearly 17,600 traders showed that 49% now feel more bearish on TSLA after the Musk-Trump split.

Adding to the unease, Milan Kovac, the head of engineering for Tesla's Optimus robot program, is reportedly leaving the company, per Bloomberg.

What Does Wall Street Think?

Morgan Stanley's Adam Jonas played down the political spat, maintaining an 'Overweight' rating and $410 price target. While acknowledging that Musk's clash with Trump could“alienate multiple sides of the political spectrum,” he said Tesla still holds "valuable apolitical cards" in the form of AI, robotics, and energy infrastructure leadership.

Oppenheimer, however, flagged the shifting political calculus on renewables and EV support. The firm says the Trump-Musk fallout may delay safe-harbor provisions in renewable energy legislation. It sees near-term upside for solar names but warns Tesla faces“the difficult work of brand repair” and heightened scrutiny of its AI and autonomy efforts. It maintains a 'Perform' rating on the stock.

TSLA stock is now down over 24% in 2025, making it the worst-performing 'Magnificent Seven' tech stock year-to-date.

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