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Tesla (TSLA) Stock Faces Overhang as Musk–Trump Rift Deepens

Tesla, Inc. (NASDAQ:TSLA) is one of the 10 Buzzing AI Stocks on Wall Street Right NowOn July 1st, Wedbush analyst Daniel Ives reiterated an “Outperform” rating on the stock with a $500.00 price target following the latest criticism from Trump.

Ives considers the Trump-Musk relationship to be a “soap opera” that has become a significant overhang on Tesla’s stock.

“As we discussed, this BFF situation has now turned into a soap opera that remains an overhang on Tesla’s stock, with investors fearing that the Trump Administration will be more hawkish and show scrutiny around Musk-related US government spending related to Tesla and SpaceX, and most importantly the autonomous future, with the regulatory environment key to the future of Robotaxis and Cybercabs. We would expect the stock to be weak to kick off trading this morning as the Street will show concern that the Trump and Musk once BFF relationship now backfires and turns into a junior high school friendship gone bad into an enemy. ”

“We believe this situation will settle and at the end of the day Musk needs Trump and Trump needs Musk given the AI arms race going on between the US and China. The jabs between Musk and Trump will continue as the budget rolls through Congress, but Tesla investors want Musk to focus on driving Tesla and stop this political angle, which has turned into a life of its own in a roller coaster ride since the November elections. At the end of the day, being on Trump’s bad side will not turn out well, and Musk knows this, and Tesla investors want this back and forth to end. We maintain our Outperform rating and $500 price target.”

Tesla, Inc. (NASDAQ:TSLA) is an automotive and clean energy company that leverages advanced artificial intelligence in its autonomous driving technology and robotics initiatives.

While we acknowledge the potential of TSLA as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 10 AI Stocks in the Spotlight and 10 AI Stocks Investors are Watching.

Disclosure: None.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

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