Musk-Trump blowup is net negative for Tesla, says former Ford CEO Mark Fields
Mark Fields, former Ford president and CEO, joins 'Power Lunch' to discuss what'll happen with Tesla buyer and sellers, if Musk has alienated Tesla's customer base and much more.
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Analysts Look to Tesla's Robotaxi Launch After Stock Hit From Musk-Trump Spat
Tesla is expected to launch its autonomous ride hailing service later this month, perhaps as soon as this week. The company has yet to confirm or deny a report from Bloomberg that it is targeting a June 12 launch for the robotaxi. The EV maker's stock could use a lift after a week marked by a spat between CEO Elon Musk and President (TSLA) is expected to launch its robotaxi service in Austin, Texas, as soon as this week, with the electric vehicle maker's stock in need of a lift after a week marked by political strife between CEO Elon Musk and President Trump. The stock rebounded nearly 4% to close just above $295 Friday, after tumbling 14% on Thursday. They've lost roughly one-quarter of their value since the start of the year. Tesla bulls believe a robotaxi program could drive substantial upside in the company's stock. Bloomberg last month reported that Tesla was targeting a June 12 launch, citing a person familiar with the matter, adding that the date could change. The company has not confirmed that date, and Tesla did not respond to Investopedia's request for comment in time for publication. Musk said in last month's earnings call and a May 20 interview with CNBC that the company was still on track to launch the program by the end of the month. The start of the program, Musk told CNBC, will likely be about 10 Model Y vehicles operating autonomously, with the company later expanding to more vehicles and cities. Tesla owners will eventually be able to add their vehicle to the available fleet of Teslas to rent for a ride, Musk has said, which could help Tesla scale the project before the Cybercab goes into production next year. Oppenheimer analysts recently wrote that the company's ability to get its software to drive fully autonomously with its current suite of cameras could be "key to its technology leadership and stock performance," but added they believe it might take at least one or two more hardware and software updates before Tesla can deliver reliable autonomous performance. More bullish analysts, like Wedbush's Dan Ives, have said they think successful autonomous driving software will be the start of technology that will eventually add $1 trillion in value to the company. Overall, analysts are somewhat divided on Tesla's stock, with 10 of the brokers tracked by Visible Alpha giving the stock a "buy" rating, with four "hold" and four "sell" ratings. Their average price target is about $304, slightly above Friday's closing level, but their price targets range from as low as $120 to as high as $500. Read the original article on Investopedia
Business Insider
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New York Times
33 minutes ago
- New York Times
Trump-Musk Spat Creates More Problems for Tesla
Elon Musk's bitter falling-out with President Trump could be costly for Tesla. As long as he is persona non grata in the Trump administration, Mr. Musk, the chief executive of Tesla, will struggle to persuade Republicans not to gut climate policies worth billions of dollars to the electric car and battery company. Mr. Musk may also lose sway over federal regulators who could make or break his plans to deploy driverless taxis, which he has described as the future of the company. Tesla is already suffering steep declines in sales and profit. The company's share price plummeted 14 percent on Thursday, its biggest one-day decline, after Mr. Musk and Mr. Trump began insulting each other on social media. The stock recovered somewhat Friday, rising nearly 4 percent, perhaps on hopes that the men would reach a truce or because investors thought the stock was now a bargain after the previous day's drop. There was always a disconnect between Mr. Musk and his Republican allies on electric cars. The domestic policy bill passed by House Republicans and being considered by the Senate will hurt the electric car market in the United States, where Tesla is the largest manufacturer by far. The bill would eliminate tax credits of up to $7,500 for people who buy electric cars. It would quickly phase out subsidies for battery factories and lithium refineries, and end financial support for electric vehicle charging stations. The bill imposes an annual fee of $250 on electric vehicle owners that environmental groups say is punitive. Those measures would hurt all carmakers that sell electric vehicles. But the Trump administration and Republicans in Congress are also trying to kill regulations that are especially beneficial to Tesla. Those rules allow Tesla to sell clean air credits to other carmakers that fail to meet environmental standards. Want all of The Times? Subscribe.
