From Yahoo Finance: 2025-06-09 19:31:00

Tesla Inc. (TSLA) experienced a significant drop last week due to tensions between Elon Musk and President Donald Trump. Despite this, analyst Tom Lee remains optimistic about the stock’s long-term prospects.

The public dispute between Trump and Musk led to Tesla losing $152 billion in market capitalization. However, Lee believes the recent decline is just a return to support levels and does not alter Tesla’s overall outlook.

Wedbush analyst Dan Ives echoes Lee’s sentiment, stating that the feud between Trump and Musk does not change their positive view on Tesla’s autonomous path. They anticipate Trump approving regulations for autonomous vehicles.

Although tensions between Musk and Trump escalated, there are indications of a potential truce, leading to a 3.67% increase in Tesla’s stock on Friday. Lee’s Fundstrat Granny Shots US Large Cap ETF includes Tesla as a significant holding.

Despite recent challenges, the GRNY ETF, which includes Tesla, has seen gains both since its inception and year-to-date. While Tesla’s stock has declined in the short term, it has shown strong growth over the past year.

Investors can still benefit from Tesla’s advantages in electric vehicle design and manufacturing, upcoming robotaxi products, and ventures into drones and robots. Despite recent setbacks, analysts are optimistic about Tesla’s long-term prospects.

Read more: ‘Tesla Still Holds All Of Its Advantages, So We Aren’t Too Concerned’