Tesla stock is once again in the spotlight, but this time the buzz isn’t about a new vehicle launch or breakthrough innovation. Instead, it’s the escalating war of words between Tesla CEO Elon Musk and former President Donald Trump that has shaken investor confidence and triggered sharp fluctuations in the stock price. As of early June 2025, Tesla stock has seen wild intraday swings, dropping over 10% in a single day following comments made by Musk about his political influence in the 2024 election.
Musk Claims He Helped Trump Win—Then Slams His Policies
In a recent public statement, Elon Musk asserted that Donald Trump would not have won the 2024 presidential election without his direct support. Musk’s comments were intended to showcase his political influence, but they quickly backfired. He didn’t stop there. Just days later, Musk blasted the Trump administration’s newly passed budget bill—calling it a “disaster” that would gut EV subsidies, burden the middle class, and inflate the federal deficit beyond recovery.
Tesla stock reacted swiftly. Within hours of Musk’s statements, shares of TSLA plummeted as traders reacted to fears of strained relations between Tesla and the federal government. For a company that relies heavily on government incentives for electric vehicle sales, the political infighting could not come at a worse time.
Tesla Stock and the “Mega Bill” Fallout
Musk’s opposition to what has been nicknamed the “One Big Beautiful Bill” has created real uncertainty for Tesla’s bottom line. The bill proposes eliminating several key green energy credits that have historically benefited Tesla. At the same time, the bill diverts funding to oil infrastructure and defense—a move Musk publicly condemned.
Key Provisions of the Bill That Affect Tesla:
- Complete removal of federal EV tax credits for vehicles over $50,000
- Introduction of tariffs on certain Chinese battery components
- Tax incentives redirected toward traditional automotive jobs in swing states
This has prompted Tesla shareholders to reassess the company’s prospects under Trump’s second term. The results are evident in the sharp volatility of Tesla stock. Just last week, Tesla stock hit $329.89 before dropping to $298.51 in a matter of hours—an unsettling sign of investor uncertainty.
Analysts Split: Is Tesla Still a Buy?
Wall Street is divided on the implications of this political drama for Tesla stock. Some analysts argue the conflict is a short-term distraction from Tesla’s long-term growth trajectory, especially with upcoming releases in autonomous driving and new battery tech. Others believe this feud introduces a new layer of risk that could weigh on Tesla’s valuation for months.
Positive outlooks focus on:
- Expected launch of Tesla’s fully autonomous Robotaxi fleet by late 2025
- Continued global demand for EVs, especially in Europe and Asia
- Expanding Tesla Energy operations in Texas and the UK
Bearish views cite:
- Political instability and weakened federal support for EVs
- Brand damage from Musk’s increasingly polarizing public persona
- Legal battles Tesla still faces over labor disputes and product safety
While some brokerage firms have raised their price targets, others have issued cautionary downgrades, warning clients of “headline risk” and “political overhang.”
The Tesla Takedown: Consumer Sentiment Shifts
Outside the financial sector, Tesla faces mounting pressure from the public. The so-called “Tesla Takedown” movement—fueled largely by online organizing—has gained traction in the wake of Musk’s alignment with divisive political rhetoric. Protesters have gathered at Tesla showrooms across major cities, calling for consumers to ditch the brand in favor of other EV makers seen as more environmentally and socially conscious.
There has also been a visible spike in used Tesla listings across online marketplaces, with some former owners citing “ethical reasons” for selling their vehicles. For a company that has built much of its brand on being futuristic, clean, and innovative, the current backlash threatens to dent its cultural cachet.
Can Tesla Reclaim Investor Confidence?
As Tesla stock weathers this political storm, the company faces a crucial test: Can it realign its image, refocus on innovation, and maintain investor trust?
Steps Tesla could take to recover:
- Reaffirm its commitment to sustainable technology and environmental impact
- Distance itself from volatile political involvement
- Deliver on promised product launches like the affordable compact EV and Robotaxi
- Increase transparency with shareholders on how it will navigate policy changes
Ultimately, Tesla’s brand has always been tightly linked to Elon Musk’s persona. That worked well when Musk was viewed as a genius innovator. But in a deeply polarized climate, his growing role in political controversies might prove more liability than asset.
Tesla stock remains one of the most-watched assets in the market, but political turmoil and CEO behavior could decide whether its next big move is up—or down. Stay alert, stay informed, and stay strategic in this rapidly shifting market landscape.