Trump-Musk Drama Triggers Selloff in Palantir Stock (PLTR), DJT, and More

Palantir Technologies (PLTR) stock dropped nearly 8% on Wednesday, closing at $121.57. The fall wasn’t triggered by any company-specific news. Instead, it followed a public clash between Tesla (TSLA) CEO Elon Musk and President Donald Trump, a spat that rattled stocks often tied to Trump-related trades.

Along with Palantir, stocks such as Trump Media & Technology Group (DJT) slid more than 8%, while Geo Group (GEO) lost over 2%. Also, Bitcoin (BTC), often favored by those who prefer to stay outside the traditional financial system, slipped around 2.5%.

The drama began with a failed backroom deal, then spilled into the open. Trump took shots at Tesla’s (TSLA) CEO Elon Musk during a press event, accusing him of trying to kill a key tax-cut bill in Congress. He claimed Musk was upset because the bill would cut some electric vehicle perks that help Tesla. Musk fired back online, using X—his own social platform—to slam Trump’s leadership and accuse him of favoring allies unfairly. Tesla stock, already sliding, took a bigger hit after the clash and finished the day down 14%.

Palantir Is Still on Solid Ground

Despite the selloff, Palantir doesn’t seem to have much to worry about in terms of its fundamentals. The stock has been one of the top performers over the past year, gaining more than 400%. Business momentum remains strong, with new deals, rising commercial demand, and record revenue helping to fuel the rally.

To add context, in Q1, Palantir signed a key defense contract with NATO for its Maven Smart System—an AI platform designed to improve battlefield decisions. The company also teamed up with Google Cloud to expand its FedStart platform, which supports U.S. agencies. The partnership allows government clients to use Palantir’s AI tools via Google’s cloud network, with Anthropic’s Claude for Enterprise as the first model available.

These moves reinforce Palantir’s core strength in defense and government services. And so far, fears of big spending cuts haven’t slowed down its federal business. Even with the Pentagon’s proposed budget changes, the company’s outlook in AI and national security remains strong.

Is PLTR a Good Stock to Buy?

Turning to Wall Street, analysts have a Hold consensus rating on Palantir Technologies stock based on three Buys, eleven Holds, and four Sells assigned in the past three months, as indicated by the graphic below. The average PLTR stock price target is $100.13, implying downside potential of 16.50%.

See more PLTR analyst ratings