Elon Musk's feud with Trump likely won't blow up Tesla's robotaxi push, analysts say

Core Viewpoint - The recent feud between Elon Musk and President Donald Trump has temporarily affected Tesla's stock value, but analysts believe it will not have a long-term impact on the company's business, including its robotaxi ambitions [1][3]. Group 1: Impact of the Feud - The conflict began when Musk criticized a GOP spending bill that cuts EV tax credits and is projected to increase the national deficit by over $2.4 trillion [2]. - During the feud, Tesla's stock fell by 14%, resulting in a loss of $138 billion in market capitalization, while Musk's net worth dropped by an estimated $34 billion [3]. - Analysts like Seth Goldstein from Morningstar suggest that the feud may influence stock prices and investor sentiment but does not significantly affect Tesla's business fundamentals [4]. Group 2: Future Prospects - Gene Munster estimates that the removal of EV tax credits could lead to a 15% reduction in Tesla's deliveries by 2025 [5]. - Despite the feud, analysts believe the administration is unlikely to hinder Tesla's robotaxi launch, which Musk claims could unlock trillions in market value [6]. - Munster argues that the White House has little to gain from obstructing advancements in autonomy, as it is crucial for the U.S. to lead in AI [7]. Group 3: Government Relations - Goldstein notes that while the administration could theoretically impose regulations on autonomous vehicles, it is unlikely to take such detailed actions against Tesla [8]. - Morgan Stanley analyst Adam Jonas emphasizes that the feud does not affect the long-term factors driving Tesla's stock value, such as AI leadership and renewable energy initiatives [9]. - Trump has expressed a desire for Tesla to succeed, indicating a potential for a neutral or supportive stance from the administration moving forward [11].