Argus Was Wrong About Hitting the Brakes on Tesla Over Musk-Trump Fallout

On June 9,  Argus Research downgraded Tesla (NASDAQ: TSLA) from Buy to a cautious Hold, despite keeping a long-term Buy outlook. The firm acknowledged Tesla’s sheer weight in the U.S. EV market, which still commands around half the market as of late 2024, and its nearly trillion-dollar valuation. But lately, the stock hasn’t been moving in step with its usual.

At the heart of the issue was Elon Musk’s political fallout with Donald Trump. Things got messy after Musk criticized a congressional spending bill, which led the President to suggest Musk’s outrage stemmed from the bill axing EV tax credits. The noise wasn’t just political, it affected the brand and stock alike.

Argus Hits the Brakes on Tesla Over Musk-Trump Fallout

Tesla’s Q1 2025 results came in soft, and added fuel to Argus’ downgrade decision. Still, the firm expected Tesla to weather the global EV turbulence. The upcoming Model 2, Tesla’s promised budget option, along with AI ventures like Cybercab and the Optimus robot, may give the stock a lift, at-least in the short term.

Yet Argus pointed to a persistent drag: Musk himself. His high-profile feuds and increasingly divisive public image are turning off portions of the market. Cybertrucks piling up without buyers is one indication of that.

Even so, Argus stuck by its broader faith in Tesla’s future. The company remains the rare EV maker with real profits, and it’s still pushing into energy storage, self-driving tech, and robotics.

TSLA shares returned around 20% since Argus’ report.

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Disclosure: None.