‘This Too Shall Pass,' Say Tesla Bulls Amid Musk-Trump Clash
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For example, ace hedge fund manager Cathie Wood stated that 'this too shall pass,' reflecting her continued confidence in Tesla's future. Wood believes that Tesla could reach a multi-trillion-dollar valuation by leveraging its Full Self-Driving (FSD) technology.
At the same time, Wedbush's top analyst, Daniel Ives, stated that 'this situation will settle' because he believes that both of America's super personalities need each other, given the ongoing artificial intelligence (AI) arms race with China. Ives maintained his Buy rating and a Street-High price target of $500 on TSLA stock, which implies 66.3% upside potential from current levels.
Daniel Ives Expects the Situation to Settle Soon
Ives acknowledges that the renewed feud presents an overhang on Tesla stock, since the Trump administration controls and makes important decisions about government spending, regulatory approvals, and tax credits. He added that investors are concerned the Trump administration could take a more hawkish stance and increase scrutiny of Musk-related companies.
Tesla's robotaxi potential depends on government decisions regarding autonomous vehicles, while SpaceX relies on contracts from NASA (National Aeronautics and Space Administration) and the Department of Defense (DOD). Ives cautioned that it is not beneficial for Musk to be on Trump's bad side. Investors also want this nightmare to end soon, so Musk can fully focus on leading his businesses.
The billionaire CEO is already burdened with leading sales efforts in the U.S. and Europe following the departure of his longtime confidant, Omead Afshar, from Tesla. Nonetheless, the top analyst believes the feud will end soon, as the two need each other to compete in the AI arms race against China.
Is Tesla a Good Long-Term Investment?
Overall, analysts remain cautious about Tesla's long-term stock trajectory. On TipRanks, TSLA stock has a Hold consensus rating based on 13 Buys, 12 Holds, and nine Sell ratings. Also, the average Tesla price target of $287.39 implies 4.4% downside potential from current levels. Year-to-date, TSLA stock has lost 25.5%.
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