Argus Was Wrong About Hitting the Brakes on Tesla Over Musk-Trump Fallout
At the heart of the issue was Elon Musk's political fallout with Donald Trump. Things got messy after Musk criticized a congressional spending bill, which led the President to suggest Musk's outrage stemmed from the bill axing EV tax credits. The noise wasn't just political, it affected the brand and stock alike.
Tesla's Q1 2025 results came in soft, and added fuel to Argus' downgrade decision. Still, the firm expected Tesla to weather the global EV turbulence. The upcoming Model 2, Tesla's promised budget option, along with AI ventures like Cybercab and the Optimus robot, may give the stock a lift, at-least in the short term.
Yet Argus pointed to a persistent drag: Musk himself. His high-profile feuds and increasingly divisive public image are turning off portions of the market. Cybertrucks piling up without buyers is one indication of that.
Even so, Argus stuck by its broader faith in Tesla's future. The company remains the rare EV maker with real profits, and it's still pushing into energy storage, self-driving tech, and robotics.
TSLA shares returned around 20% since Argus' report.
While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
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