Tesla: Cathie Wood Breaks Silence on Musk-Trump Blowup
June 9 – Tesla (NASDAQ:TSLA) stock has come under renewed pressure amid rising political tensions between CEO Elon Musk and former U.S. President Donald Trump, a feud Ark Invest (ARKK) CEO Cathie Wood says may signal deeper structural risks.
In a Friday video posted to Ark’s YouTube channel, Wood highlighted Musk’s growing friction with the government, noting his companies, including SpaceX and Neuralink, have long benefited from federal loans, contracts, and subsidies.
Wood suggested Musk may be attempting to distance his businesses from political affiliations, but such a shift could prove difficult given their historic reliance on U.S. government support. Tesla and investors are beginning to realize just how much control the government holds, she said.
The feud comes as Trump threatens to revoke federal contracts and casts doubt on Musk’s influence, while Musk has criticized Trump’s proposed spending plans and alleged connections to Jeffrey Epstein, triggering sharp market reaction.
Despite trimming its stake after the 2024 election, Ark still holds Tesla as its top position in the ARK Innovation ETF, with a 10.3% weighting. Wood remains bullish long term, maintaining a $2,600 price target on the stock by 2029.
Based on the one year price targets offered by 44 analysts, the average target price for Tesla Inc is $288.97 with a high estimate of $500.00 and a low estimate of $19.05. The average target implies a downside of -2.09% from the current price of $295.14.
Based on GuruFocus estimates, the estimated GF Value for Tesla Inc in one year is $270.55, suggesting a downside of -8.33% from the current price of $295.14.
This article first appeared on GuruFocus.