Tesla ‘s plunge following CEO Elon Musk ‘s online feud with President Donald Trump on Thursday was unnecessarily severe and offers investors a good entry point, according to Tom Lee, Fundstrat’s head of research. Musk and Trump threw barbs at one another over the course of Thursday. Musk claimed Trump would have lost the election without his support and called the president’s spending bill a “disgusting abomination.” Trump threatened to cut government contracts for the billionaire entrepreneur’s companies. Tesla shares dropped 14% in Thursday’s session, meaning the electric vehicle maker shed $152 billion in value — its biggest one-day market cap loss on record. Shares rose more than 4% in Friday’s premarket. TSLA 5D mountain Tesla, 5-day chart Thursday’s events marked a dramatic turn in the relationship between the president and the world’s richest man. Trump at one point viewed Tesla vehicles at the White House and said he would buy one as a show of support for Musk, who was a key donor during last year’s election. “For Tesla, we see today’s pullback as a buying opportunity,” Lee wrote in a note to clients. “In our view, Elon[‘s] actions are now ingratiating him with non-MAGA universe, which is a lot of the USA, and the rest of the world.” Lee said Tesla, which has faced backlash as a result of Musk’s support of Trump and his leadership in the contentious government efficiency initiative, can now see an “improved halo.” The Fundstrat research chief also said that Trump’s warning of Musk’s companies losing government contracts was “hollow,” given that they provide critical services. Tesla shares have dropped more than 29% in 2025. The average analyst polled by LSEG has a buy rating and expects shares to rise just over 1.5% in the year ahead. For the broader market, Lee said the lack of a major jump in the CBOE Volatility Index (VIX) shows investors “do not seem to be too concerned.”
