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Trump-Musk feud could end up helping Tesla stock, Tom Lee predicts

by admin June 7, 2025
June 7, 2025
Trump-Musk feud could end up helping Tesla stock, Tom Lee predicts

Tesla Inc (NASDAQ: TSLA) was hit hard Thursday after President Donald Trump signalled plans to terminate Elon Musk’s federal contracts and subsidies in retaliation for his derogatory remarks against the “One Big Beautiful Bill Act”.

And while Trump has already confirmed that he’s not interested in a call with Musk – one that was indicated as likely in a recent report – Fundstrat’s Tom Lee, nonetheless, recommends loading up on TSLA shares on Friday.

According to the Street’s top-ranked strategist, the Trump-Musk feud driven sell-off in Tesla stock has gone a bit too far and has created an exciting buying opportunity for long-term investors.

Why does Lee recommend buying the dip in Tesla stock?

Fundstrat’s head of research expects Tesla shares to resume their upward trajectory in the coming days, primarily because Musk’s recent actions are helping him reconnect with audiences beyond his more right-leaning followers.

This shift could broaden the billionaire’s appeal to more mainstream or moderate Americans, as well as international audiences, Lee told clients in a research note today.

Elon’s actions are now ingratiating him with non-MAGA universe, which is a lot of the USA, and the rest of the world.

In short, the strategist believes that improving sentiment around Elon Musk could have a positive impact on TSLA’s valuation going forward.

TSLA shares shouldn’t be bothered by Trump’s warning

Tom Lee recommends buying TSLA stock on the dip also because Trump’s warning that Musk will lose government contracts was “hollow”.

He dubbed services that the billionaire’s companies provide to the US government, such as satellite launches and clean energy initiatives, as “essential” in his research note on Friday.

Because of their strategic importance, Fundstrat’s strategist sees it unlikely that political tensions alone would jeopardize those contracts, making the threat more rhetorical than realistic.  

Following the recent decline, Tesla stock is down nearly 30% versus its year-to-date high.

Other experts have a different view on Tesla Inc

Not everyone is in the same league as Tom Lee on Tesla shares, though.

Ross Gerber, a known TSLA bear and chief executive of Gerber Kawasaki Wealth and Investment Management, for example, says he’s trimming his exposure further to the EV stock following Elon Musk’s “disaster” feud with the US President.

“The board isn’t going to do anything. Nobody’s going to protect Tesla shareholders, and the way you protect yourself is by selling stock,” he argued.

Investors should also note that other Wall Street analysts are not particularly bullish on Tesla stock either. The consensus rating on the electric vehicle behemoth currently sits at “hold” only.

Analysts have an average price target of about $308 on TSLA at the time of writing, which indicates potential upside of less than 3% from current levels.

The post Trump-Musk feud could end up helping Tesla stock, Tom Lee predicts appeared first on Invezz

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