Tesla stock declines after Trump's policy reversal, but long-term outlook remains positive

From Nasdaq: 2025-01-22 08:00:00

Tesla stock slumped after Trump reversed a pro-EV policy, ending the day with a 0.6% decline. The policy reversal affected the EV sector, with Lucid and Rivian shares falling. Traditional automakers like GM and Ford saw stock increases. Trump also directed a review of EV subsidies and tax credits.

Despite the decline, Tesla shares have surged over 60% since Trump’s election victory. Piper Sandler increased Tesla’s share price target to $500, reaffirming it as a top “Buy and Hold” recommendation. Tesla-heavy ETFs like TSLT, TESL, and ARKK are in focus. Musk downplayed the impact of policy changes on Tesla.

Investors interested in Tesla ETFs should consider TSLT, TESL, and ARKK. These ETFs minimize company-specific concentration risks and offer exposure to Tesla’s potential growth. With Tesla’s strong fundamentals and Trump’s policies, these ETFs could present indirect opportunities for investors looking to capitalize on Tesla’s future success.



Read more at Nasdaq: Buy the Dip in Tesla ETFs Amid Trump’s Reversal of Pro-EV Policies?