Summary:
After Trump’s victory in November, Tesla surged on hopes that Trump’s return would benefit Elon Musk. However, soon after, Tesla dropped over 40% from its highs, driven by the anti-Trump/anti-Elon protests and growing cultural backlash. My April entry was a calculated bet: short-term political and ESG criticism, but long-term product leadership, infrastructure dominance, and potentially favorable U.S. policies. I believe Tesla is positioned to bounce back as protests fade and the real EV story begins to reassert itself. This dip was nothing but just temporary political noise, not a fundamental shift. Tesla’s long-term story remains intact.
"Tesla Takedown" protests erupted in early 2025, targeting Musk’s political ties and his role in the Trump admin's DOGE initiative which led to bearish stock pressure. While there is public friction between the two, I believe the Trump-Musk feud wouldn’t derail critical initiatives, like robotaxis and AI/EV policy. Industry professionals project Trump may favor Tesla through reduced regulation, potential tariffs on Chinese competitors, and championing US made EVs. Trade barriers against Chinese EVs plus Trump-administration friendliness, gives Tesla a protected moat.
Tesla remains the U.S. EV market leader, holding ~43.4% share despite sales falling due to protests. Tesla's Supercharger network remains unmatched boasting around 7,000 fast-charging stations and 65,800+ connectors across major regions. The infrastructure advantage continues to underpin EV ecosystem control, something that gives Tesla a generational advantage.
I believe this dip was likely the market pricing in an earnings hit. However, I still believe this is a transient slump linked to protests and policy noise, not structural decline. Looking towards the long term, Tesla’s autonomous and energy ambitions such as robotaxis, AI, and grid services, outweigh the temporary drops in EV sales.
I do not expect to DCA much as Tesla already reported missed earnings. I’m aiming for a technical support position and around halfway from their highs at around $361.