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On Friday, Tesla (NASDAQ:TSLA) stock experienced pressure following an online dispute between CEO Elon Musk and U.S. President Donald Trump. The tension arose from a series of exchanges on social media, raising concerns about potential regulatory challenges for Tesla in Washington, D.C. According to InvestingPro data, Tesla shares have fallen nearly 18% in the past week, reflecting the market’s sensitivity to this development. The stock’s volatility is one of several key metrics tracked by InvestingPro’s comprehensive analysis tools.
Wedbush analysts, led by Dan Ives, commented on the situation, describing it as one of the most unusual days in their coverage of Musk. They noted the friendship between Musk and Trump had quickly turned sour, likening it to a "frenemies" relationship. This development has put significant pressure on Tesla shares, with fears that Trump could become an adversary, complicating the regulatory landscape for Musk. InvestingPro data shows Tesla currently trades at a P/E ratio of 145x, with analysts maintaining mixed views on the stock’s potential. The company maintains a "GOOD" financial health score, suggesting strong fundamentals despite current market volatility.
Despite these concerns, Wedbush maintains a bullish outlook on Tesla, emphasizing the company’s future in autonomous technology, which they value at $1 trillion. The analysts believe that the current situation has led to Tesla shares being oversold.
According to media reports, the White House has arranged a call between Musk and Trump, aiming to mend their relationship. Wedbush analysts expressed optimism that the two parties could resolve their differences, potentially easing the pressure on Tesla shares.
In other recent news, Tesla’s financial and operational activities have drawn significant attention. Analysts at Goldman Sachs lowered their price target for Tesla to $285 from $295, maintaining a Neutral rating due to concerns over vehicle deliveries and earnings forecasts. They noted a decline in Tesla’s deliveries in major markets such as the United States, Europe, and China, with expectations for second-quarter deliveries now ranging between 335,000 and 395,000 vehicles. Meanwhile, Oppenheimer maintained its Perform rating on Tesla, citing ongoing challenges in the company’s autonomy platform and political dynamics affecting renewable energy support. In Germany, Tesla’s sales dropped by 36.2% in May, contrasting with a 44.9% increase in the overall electric vehicle market in the country. Tesla’s shipments in China also saw a 15% year-on-year decrease in May, though there was a 5.5% increase compared to April. These developments highlight the complexities Tesla faces in navigating both market and political landscapes.
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