Core Viewpoint - The recent public conflict between Tesla CEO Elon Musk and President Donald Trump is perceived as a strategic move rather than a spontaneous dispute, with implications for Tesla's market performance and brand perception [1][3]. Group 1: Market Impact - The clash between Musk and Trump led to a significant 14% drop in Tesla shares, resulting in a loss of $150 billion in market value within a single day [1]. - Following the initial turmoil, Tesla's stock rebounded, trading at $320.07, reflecting an increase of nearly 4% [2]. Group 2: Analyst Perspectives - Morgan Stanley maintains a bullish outlook on Tesla, reaffirming it as their 'top pick' in the U.S. auto sector and raising the price target from $400 to $410 while keeping an 'Overweight' rating [2][4]. - The firm believes the feud will not have long-term repercussions on Tesla's performance and highlights the upcoming robotaxi launch in Austin as a significant catalyst for growth [4]. Group 3: Strategic Considerations - Analysts from Morgan Stanley suggest that Musk's public engagement with political issues is a calculated strategy aimed at garnering attention and achieving specific goals [3]. - The firm's analysis indicates that Tesla is well-positioned in the fields of artificial intelligence, autonomous vehicles, and energy, making it a unique player in the market [3]. Group 4: Diverging Opinions - While Morgan Stanley remains optimistic, other analysts, such as Baird's Ben Kallo, have downgraded Tesla from 'Outperform' to 'Neutral', citing concerns over the aggressive timeline for the robotaxi rollout and setting a price target of $320 [6].

Group 1 - The ongoing feud between SpaceX CEO Elon Musk and President Donald Trump is benefiting competitors AST SpaceMobile Inc and Rocket Lab USA Inc in the earth exploration sector [1] - AST SpaceMobile Inc's stock has increased by 14.1% to $35.58, reaching a peak of $36.66, and has a year-to-date gain of 320.4% with over 70% added this year [2] - Rocket Lab USA Inc's stock rose by 6.4% to $30.77, with a recent surge to $32.70, and has experienced a significant 596.6% increase over the past 12 months [3] Group 2 - Both AST SpaceMobile and Rocket Lab are experiencing high trading volumes in the options market, with ASTS and RKLB seeing triple the typical volume [4] - The most popular options for ASTS are the June 40 call, while for RKLB, it is the weekly 6/13 32-strike call, indicating new positions being opened [4]

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].

Group 1 - The relationship between Donald Trump and Elon Musk has deteriorated significantly, with Trump publicly criticizing Musk and stating he has "lost his mind" [1][3] - A White House official confirmed that Trump is not interested in speaking with Musk and that no phone call is planned, indicating a lack of resolution to their ongoing feud [2][6] - Musk has expressed dissatisfaction with Trump's tax bill, which he labeled as a "big ugly spending bill," leading to a public exchange of accusations between the two [3][4] Group 2 - The conflict has negatively impacted Tesla's stock, which fell by 14.3% on Thursday, resulting in a loss of approximately $150 billion in market value [10] - Musk has threatened to decommission SpaceX's Dragon spacecraft in response to Trump's threats regarding government contracts, although he later decided against this action [11] - The feud follows Musk's recent departure from a government position where he led a cost-cutting initiative, suggesting a shift in his involvement with government affairs [13]

Core Viewpoint - The ongoing feud between President Trump and Tesla CEO Elon Musk has created uncertainty in the market, leading to a decline in Tesla's stock price and raising concerns about government support for Musk's companies [1][4][6]. Group 1: Conflict and Market Reaction - President Trump expressed disappointment in Musk for opposing his economic bill, which led to a public exchange of criticisms [2]. - The conflict has resulted in a 14.3% drop in Tesla shares on June 5, with a total market cap loss of nearly $200 billion since Musk's departure from 'DOGE' [6]. - Following the feud, Tesla shares gained 0.8% in after-hours trading, indicating some recovery potential [6]. Group 2: Government Support and Financial Implications - Trump suggested the possibility of revoking federal subsidies and contracts that benefit Musk's companies, including Tesla and SpaceX [4]. - Musk's companies have received significant government funding, with SpaceX alone receiving $3.8 billion in fiscal year 2024 and over $20 billion in contracts since 2008 [5][6]. - The Zacks Consensus Estimate for Tesla's earnings in the June quarter has decreased from 46 cents to 43 cents due to the recent conflict [11]. Group 3: Future Outlook and Strategic Initiatives - Concerns have been raised about Musk's political activities negatively impacting Tesla's sales, which reported the lowest sales in three years [7]. - Despite the challenges, Musk's focus on artificial intelligence and autonomous driving initiatives may provide a potential lifeline for Tesla [9]. - Tesla's average brokerage recommendation stands at 2.68, with 16 out of 42 analysts rating it as Strong Buy, indicating some level of confidence in the stock despite current challenges [10]. Group 4: ETF Performance and Investment Strategy - Tesla-heavy ETFs, such as TESL, NITE, TSLW, and XLY, have experienced declines, with TSLW slumping 17.3% on June 5 [12][13]. - Investors are advised to monitor government actions regarding support for Musk's companies before making investment decisions in Tesla or related ETFs [12].

Wall Street wavered on June 5, 2025, as a highly publicized feud between President Trump and Tesla CEO Elon Musk unsettled investors. Tensions between the President and Musk reached a boiling point on Thursday, with a series of heated exchanges hitting headlines, as quoted on Yahoo Finance.Speaking from the Oval Office, Trump expressed “disappointment” in Musk, questioning the Tesla TSLA CEO’s motives in opposing what he described as his “big, beautiful” economic bill. In response, Musk fired back on X (for ...

Group 1 - The conflict between Elon Musk and Donald Trump escalated significantly, primarily over Trump's proposed "Beautiful Law," leading to a complete breakdown of their previously strong relationship [1] - Musk criticized the "Beautiful Law," calling it a "disgusting monster," and referenced Trump's past concerns about government spending and deficits [1][2] - Trump threatened to terminate government contracts with Musk's companies in response to Musk's opposition [1] Group 2 - Trump responded to Musk's criticisms by stating that Musk was upset due to the cancellation of the electric vehicle procurement policy, which provided substantial subsidies for electric vehicles [4] - Musk immediately countered Trump's claims on social media, asserting that he had never seen the law and that it was rushed through Congress without proper review [4][8] - The exchange included Musk suggesting that without him, the Republican Party would not have won elections, indicating a shift in his stance towards Trump [8] Group 3 - Trump defended his tax reform law, claiming it was one of the greatest in congressional history, which reduced spending by a record $1.6 trillion and would lead to tax increases if not passed [23] - Musk announced that SpaceX would "immediately" retire the Dragon spacecraft, which was used for transporting NASA astronauts and supplies to the International Space Station [23] - Musk expressed concerns that Trump's tariff policies would lead to an economic recession later in the year, a sentiment echoed by some economists [25]