From Yahoo Finance: 2025-06-11 09:20:00

Tesla CEO Elon Musk’s feud with former ally President Trump raises concerns about the “Musk premium” on the stock. Analysts agree Tesla trades at higher levels due to Musk, with differing estimates of the premium, ranging from 10% to much higher. Tesla’s reported deliveries fell in 2024, the first decline in over a decade.

Musk’s controversies, including drug use allegations and political spats, do not deter investors drawn to his charisma and brilliance. Insults exchanged with Trump led to a 14% drop in Tesla shares, prompting concerns about potential repercussions on the company. Musk’s recent reconciliation with Trump helped boost Tesla’s stock by nearly 6% this week.

Despite recent gains, Tesla shares are down nearly 20% for the year, trading around $333. The market once saw Tesla as benefiting from favorable Trump policies, particularly in the areas of electric vehicles and autonomous driving. Tesla faces regulatory hurdles in the self-driving car space, with high hopes for its robotaxi day on June 12.

As Tesla expands into self-driving cars, it faces stiff competition from Alphabet-owned Waymo, the market leader in the robotaxi space. Analysts stress the importance of federal autonomous vehicle standards to accelerate Tesla’s time to market and remove regulatory obstacles. Tesla’s future success hinges on navigating the competitive landscape in autonomous driving. Tesla’s future is uncertain as analysts downgrade stock ahead of event. Parmar expresses concern over potential regulatory hurdles due to Musk-Trump feud. Some optimistic for resolution, while others doubt peace between Trump and Musk. Tumultuous relationship may impact Tesla’s self-driving plans. Investors and analysts wary of long-term implications.

Read more: How the Trump-Musk feud exposed the risk of the ‘Musk premium’ in Tesla’s stock