Tesla Stock Slump Tied To Trump-Musk 'Junior High School Friendship' Gone Sour, Says Dan Ives — But Predicts It Will 'Settle Down'
Wedbush analyst Dan Ives predicts a weak performance for Tesla Inc. (NASDAQ:TSLA) amidst a fallout between CEO Elon Musk and President Donald Trump.
What Happened: On Tuesday, Ives posted on X his prediction about Tesla’s performance, attributing it to the strained relationship between Musk and Trump. He described the situation as a “junior high school friendship gone bad.” However, he added that it would eventually stabilize.
“At the end of the day Musk needs Trump and Trump needs Musk. Will settle down,” posted Ives.
SEE ALSO: Mike Pence’s Advocacy Group Launches Campaign To Extend Trump’s 2017 Tax Cuts: Report
Why It Matters: The relationship between Musk and Trump has been a topic of interest recently. Trump has been vocal about the subsidies Musk’s companies receive, suggesting that without them, Musk would have to “close up shop and head back home to South Africa.”
This public criticism by Trump has had an impact on Tesla’s stock. Following Trump’s comments, Tesla’s stock fell by nearly 5% during the Tuesday pre-market session. Musk’s response to Trump’s spending bill also reignited political comeback rumors, further affecting the stock.
Investment advisor Ross Gerber criticized Tesla’s board for remaining silent amid the Trump-Musk Feud and the federal subsidies. He suggested that Musk’s enabling of Trump’s presidency would eventually lead to a power struggle.
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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