From Morningstar: 2025-06-05 19:11:00

Tesla CEO Elon Musk and US President Donald Trump are in a public feud over the US budget. Tesla shares dropped by over 14% on June 5 due to the conflict. The US spending bill includes the early expiration of the $7,500 electric vehicle subsidy, impacting Tesla’s sales and potentially leading to lower sales volumes in 2026. Trump threatened to cancel all subsidies to Musk, affecting SpaceX and possibly Tesla’s ability to sell emissions credits. Morningstar maintains a fair value estimate of $250 per share for Tesla, viewing the stock as fairly valued after the recent selloff. The early expiration of EV subsidies could hurt Tesla’s deliveries in 2026 but may not be a long-term growth driver. Tesla’s autonomous driving software could differentiate its vehicles in the market.



Read more at Morningstar: Tesla: Shares Sink as CEO Elon Musk Feuds With US…