Tesla's shares are continuing to slide amid the resurgence of a feud between CEO Elon Musk and President Donald Trump. This negative development is happening in the lead-up to Tesla's important delivery report.
Resurgence of the Musk-Trump Feud
The conflict between Elon Musk and Donald Trump re-escalated when Musk criticized a proposed spending bill working its way through the U.S. Senate. He expressed discontent and warned senators about a potential $5 trillion increase in the deficit. In response, Trump made posts directly threatening Tesla's business interests, stating there should be a review of subsidies for Musk's companies.
Pressure on Tesla Stock Amid Delivery Report
In the midst of political instability, Tesla is preparing to release its second-quarter delivery figures. The company's shares have already declined 21% year-to-date. Analysts expect deliveries to be just 366,000 vehicles, significantly below the consensus estimate of 406,000. A disappointing report could exacerbate the decline in stock value.
Potential Business Consequences for Tesla
Experts warn of potential negative consequences for Tesla given the renewed conflict between Musk and Trump. The company's current market capitalization stands at $1.02 trillion, making it sensitive to both operational performance and external political factors. Analyst price targets range from $115 to $500, with an average target of $306.07.
The situation regarding Tesla's shares remains uncertain in light of complex political interactions. The upcoming delivery report is expected to significantly impact the company in the coming months.
