Tesla's stock price plummets again! Tensions in the Trump&Musk relationship, bleak delivery prospects, is it a bottom-fishing opportunity?
Tesla's stock price fell again, closing at $300.71, a decline of 5.34%. CEO Musk's relationship with President Trump is tense, raising market concerns that Tesla may be targeted by the government. JPMorgan Chase and HSBC hold a pessimistic view on Tesla's prospects, lowering their target prices to $115 and $120, respectively. In contrast, Morgan Stanley is optimistic about Tesla, with a target price of $410, believing that its AI layout has great potential. In the short term, Tesla's stock price fluctuations may be closely related to the relationship between Trump and Musk
Investment Insights - Institutions have sharply diverging views on Tesla's prospects, but a trading opportunity may arise in the short term.
On July 1, Tesla's (TSLA) stock price plummeted again, briefly falling below $300, closing down 5.34% at $300.71.
In terms of news, the relationship between CEO Elon Musk and President Trump has once again become tense. After Musk criticized the "Big and Beautiful Act," Trump stated that he hopes the government will thoroughly investigate Musk.
These remarks have raised market concerns, with investors worried that Tesla may be targeted by the government, especially as the Robotaxi has just launched.
Additionally, Tesla's sales have declined again. Data shows that new car registrations for Tesla in France in June fell 10% compared to the same period last year, while Denmark and Sweden saw declines of over 60%.
【Source: TradingView; Tesla's (TSLA) stock price trend in 2025】
What does the future hold for Tesla's stock price?
JP Morgan is bearish on Tesla, reiterating a target price of $115, which implies that Tesla's stock price could fall another 62%.
JP Morgan warns that Tesla's full-year delivery outlook faces significant risks. They have significantly lowered their delivery and profit expectations for Tesla, reducing the second-quarter delivery estimate from 395,000 vehicles to 360,000 vehicles, and the second-quarter earnings per share estimate from $0.48 to $0.42.
HSBC also stated that Robotaxi is unlikely to contribute to revenue and profits in the short term, and without clear signs of launching a more affordable model priced below $25,000, mid-term sales growth will remain moderate.
HSBC has significantly lowered its delivery and profit expectations for Tesla from 2025 to 2027, maintaining a "reduce" rating with a target price of $120.
Morgan Stanley, on the other hand, is very optimistic about Tesla, reiterating a target price of $410, which implies that Tesla's stock price could rise another 36% Morgan Stanley believes that Tesla's artificial intelligence (AI) layout has great development potential, with FSD, Robotaxi, and robots contributing to the company's valuation growth.
Some analysts also point out that Tesla's current stock price fluctuations have already detached from the fundamentals; as long as the "AI story" can continue, speculators will keep buying in.
Are short-term fluctuations looking at the Trump-Musk relationship?
As the confrontation between Musk and Trump escalates, some investors are concerned that their increasingly heated rhetoric may further impact Tesla.
However, others believe that this is actually a good time to buy the dip on Tesla.
Previously, during the intense exchange of insults between Trump and Musk, Tesla's stock plummeted over 14%. After Musk "backed down," Tesla's stock price quickly recovered and rebounded.
"This could be another instance of a double act."
