Tesla’s Tumultuous Week: Musk vs. Trump Drama

Tesla ( (TSLA) ) has fallen by -13.88%. Read on to learn why.

Tesla’s stock has experienced a significant drop of 13.88% over the past week, largely influenced by the public fallout between its CEO, Elon Musk, and former President Donald Trump. This high-profile feud has created a cloud of uncertainty around Tesla, as Trump’s threats to cut federal contracts with Musk’s companies have added to investor concerns. The political tension has been further exacerbated by Musk’s criticism of Trump’s domestic policy bill, leading to a visible strain in their relationship.

Amidst this backdrop, Cathie Wood’s ARK Venture Fund has made a notable investment in Neuralink, Musk’s brain-interface company, ranking it as the fund’s second-largest holding. This move signals continued confidence in Musk’s ventures despite the political turmoil. However, the investment world remains cautious, with Tesla’s stock receiving a ‘Hold’ rating from analysts, reflecting the mixed sentiments surrounding the company’s future prospects.

The broader electric vehicle market’s challenges, coupled with increased competition and design concerns, have also contributed to Tesla’s stock decline. While some analysts view the recent dip as a buying opportunity, the ongoing political drama and market uncertainties suggest that Tesla’s path to recovery may be complex. Investors are closely watching how these dynamics will play out and impact Tesla’s long-term trajectory.