2 days ago
Tom Lee Dismisses Worries Over Tumbling TSLA Stock Amid Elon Musk-Trump Feud: 'Tesla Still Holds All Of Its Advantages, So We Aren't Too Concerned'
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Tesla Inc. (NASDAQ:TSLA) saw a sharp decline last week as the tensions between Elon Musk and President Donald Trump flared up on social media, however, this expert predicts no change in its long-term view despite the fall.
What Happened: After Trump and Musk's public spat on Thursday, the automaker erased over $152 billion in market capitalization; however, Tom Lee, the CIO at Fundstrat Capital, remains positive on the stock.
In a video reshared on X, Lee said, the decline that we have seen recently is just coming back to support.
'I don't think the long-term picture has changed much for Tesla,' he said.
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Furthermore, he highlighted Tesla's leadership and competitive strength in electric vehicle design and manufacturing, an affordable robotaxi product launching soon, Optimus robots with movement dexterity, and its foray into drones.
'Will all that Tesla still holds all of its advantages, so we aren't too concerned about the decline,' Lee Wedbush analyst Dan Ives also reiterated Lee's views, saying that 'Trump/Musk going from BFFs to frenemies does not change our bullish view of the autonomous path looking forward.'
He said that Wedbush still expects Trump to green light the regulatory federal framework for autonomous vehicles regardless of the feud.
Why It Matters: Tensions rose between Musk and Trump when he called the 'Big Beautiful Bill' a "disgusting abomination" earlier this week, and both were seen allaying accusations against each other over the disagreement on the bill Thursday.
However, the stock rose 3.67% on Friday after a signal that both parties could be headed for a truce.
Lee's Fundstrat Granny Shots US Large Cap ETF (NYSE:GRNY), which holds about 38 stocks, includes Tesla with 2.27% of weight.
Apart from this, the exchange-traded fund's top holdings include Robinhood Markets Inc. (NASDAQ:HOOD) with a weight of 3.06%, General Electric Co. (NYSE:GE) at 2.96%, GE Vernova Inc. (NYSE:GEV) at 2.83% and Nvidia Corp. (NASDAQ:NVDA) weighting 2.79%.
The GRNY ETF has gained 7.28% on a year-to-date basis, and it has been up 4.30% since its inception in November last year. Despite Tesla's decline, the ETF rose 3.04% over the last week.
Shares of Tesla slumped 14.11% in the last week, and they were down by 22.18% in 2025. However, over the last year, the stock has risen by 69.83%.
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This article Tom Lee Dismisses Worries Over Tumbling TSLA Stock Amid Elon Musk-Trump Feud: 'Tesla Still Holds All Of Its Advantages, So We Aren't Too Concerned' originally appeared on
