Tesla shares (TSLA) edged higher early Wednesday, but the move had less to do with batteries or robotaxis — and more to do with yet another Elon Musk broadside, this time aimed straight at President Donald Trump’s new tax bill.
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On Tuesday afternoon, Musk fired off a scathing tweet calling the Trump-backed tax legislation a “pork-filled… disgusting abomination,” directly accusing lawmakers of betrayal. The market’s response was immediate. Tesla shares slid nearly $10 in the final stretch of the session, clawing back some ground by Wednesday morning with a modest 1% premarket bump to $347.71.
It’s not the first time Musk has clashed with Trump. The two have publicly disagreed on tariffs, clean energy policy, and regulatory oversight. But this hit different — the tone was sharper, the timing tighter, and the narrative more combustible, with a major Tesla product launch just days away.
Political Blowback Becomes the Variable Tesla Investors Didn’t Want
The tension between a sitting president and the CEO of one of the country’s most influential companies is rarely a non-event. Even when the policy implications are unclear, the optics alone shift the narrative.
Tesla’s robotaxi launch — targeted for later this month in Austin — should have been the sole focus. But now, headlines are split between autonomous driving and political turbulence. That divide isn’t helpful for investors already navigating a stock that’s down 15% year-to-date, even after a 45% run since Tesla’s April earnings call.
The market is trying to figure out whether Musk’s comment is a one-off outburst or a trigger for real regulatory or political pushback.
Robotaxis Still Loom, but Politics Won’t Get Out of the Way
On Tesla’s Q1 earnings call, Musk said he planned to spend more time building and less time politicking. But for better or worse, his tweets never took the same break.
The upcoming robotaxi rollout in Austin was meant to mark a milestone — a pivot away from distractions and back toward product execution. But now, the launch could be overshadowed by fallout from the political theater Musk just reignited.
That leaves investors caught between two stories: one about autonomy and innovation, and the other about yet another feud with the White House.
Tesla Stock Moves, but the Market’s Not Just Trading Tech Anymore
Tesla’s stock action — up 0.5% Tuesday before slipping, now bouncing modestly premarket — reflects a broader truth. This is no longer just a trade on EV demand or robotaxis. It’s a trade on Musk himself, and his ability to scale vision without igniting regulatory brushfires along the way.
At some point, the market wants to go back to pricing Tesla like a car company, or a tech company, or something in between. But today, it’s still pricing in politics, unpredictability, and a CEO who won’t sit quietly — even on the verge of a product that could redefine the business.
Is Tesla a Buy, Sell, or Hold?
According to TipRanks data, Tesla currently holds a Hold rating based on 37 Wall Street analyst reviews over the past three months. Out of those, 16 analysts rate the stock a Buy, 10 say Hold, and 11 recommend Sell — reflecting a fairly split view.
The average 12-month TSLA price target is $282.70, which implies a 18% downside from the current price.