Elon Musk’s public spat with President Donald Trump has sent Tesla’s stock into a 14% dip, but analysts say the feud is unlikely to have a lasting impact on the company’s business, including its robotaxi ambitions. The disagreement began when Musk criticized the GOP’s spending bill, which slashes EV tax credits and adds over $2.4 trillion to the national deficit.
Despite the brief decline in Tesla’s value, experts believe the relationship between Musk and Trump will not hinder progress on the company’s robotaxi launch in Austin, set for June. Analyst Seth Goldstein told Business Insider that Trump has already made clear plans to cut EV subsidies, which would have a negative impact on all electric vehicle makers, not just Tesla.
Gene Munster, a Tesla investor, also expects cooler heads to prevail and believes the government will continue to support the growth of autonomous services like robotaxi. Munster noted that the Department of Transportation is reviewing federal standards for autonomous vehicle safety, which could be used as a means of regulating Tesla’s services.
Morgan Stanley analyst Adam Jonas wrote that Musk’s feud with Trump doesn’t impact the “longer-term vectors that drive the stock’s value,” including AI leadership, autonomy, and renewable power. These factors are largely apolitical, according to Jonas.
The tension between Musk and Trump appears to be easing, as the president has wished Tesla well in a recent press gaggle on Air Force One. A spokesperson for Tesla did not respond to a request for comment.
Source: https://www.businessinsider.com/elon-musk-donald-trump-feud-impact-tesla-robotaxi-launch-2025-6