Dan Ives Calls Musk-Trump Feud A 'Twilight Zone Moment' But Bullish On Tesla And Autonomous Future: 'Not Good For Either Side'
Despite the escalating public feud between Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk and President Donald Trump, analyst Dan Ives remains optimistic about the EV giant's future but warns the conflict could disrupt the regulatory framework.
What Happened: The bitter dispute between Musk and Trump erupted after the tech mogul criticized the president’s tax bill, particularly the cuts to electric vehicle (EV) and solar tax credits.
Trump retaliated by threatening to cut Musk's government subsidies and contracts, which sent Tesla's stock plummeting by 14.26% on Thursday.
In a post on X, Musk called the president's remarks about the EV mandate "an obvious lie."
Musk also accused Trump of "ingratitude" for his role in Trump's 2024 election victory, stating that without him, Trump would have lost and the Republicans would have been in a much weaker position.
Despite the tensions, Ives stated, "This feud does not change our bullish view of Tesla and the autonomous view but clearly does put a fly in the ointment of the Trump regulatory framework going forward."
He called the situation a "Twilight Zone moment" in the relationship between Musk and Trump, noting, "it's not good for either side."
Why It’s Important: Tesla saw a record $152 billion wiped from its market valuation on Thursday. The EV giant currently holds a consensus price target of $299.60, based on ratings from 26 analysts.
The highest target comes from Wedbush, which set a $500 price on May 23, 2025, while the lowest is $19.05 from GLJ Research, issued on April 23, 2025.
The three latest updates came from Wedbush, Mizuho and Wedbush again, setting an average target of $413.33, suggesting a potential upside of 44.07%.
Price Action: Tesla shares are down 24.94% year-to-date. In the after-hours trading on Thursday, the shares gained 0.77, reaching $286.90, according to data from Benzinga Pro.
Benzinga's Edge Stock Rankings highlight Tesla's strong price momentum across short, medium and long-term periods. Additional performance data is available here.
Photo Courtesy: Tada Images On Shutterstock.com
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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