01.07.25 - Trump vs. Musk - Round 2

After the first clash in early June, Elon Musk attempted to de-escalate tensions on June 11, posting on X that he “regrets some of his posts… they went too far.”

For context, revisit the original analysis: Trump vs. Musk, published 6 June 2025 in ETFMandate Market Insights.

But today, the feud reignites.
President Donald Trump publicly accused Elon Musk of profiting excessively from EV subsidies and hinted that the Department of Government Efficiency should investigate. This came shortly after Musk threatened to increase political donations against Republicans backing Trump’s new tax bill.

Markets: Tesla stock is sharply lower, trading around USD 300, down more than 5%.

My view: While this story is unlikely to drag broader markets lower on its own, it does have an impact on the index due to Tesla’s significant weight as part of the Magnificent 7.

The disagreement highlights deeper tensions around US fiscal policy. The proposed tax bill and the persistently high US debt levels are critical themes that could shape markets in the near to mid-term. I’ll continue to monitor developments closely. As always, ETFMandate will keep you informed in real time.

Negative news around Tesla continues to pile up. Latest delivery figures confirm a persistent sales slowdown. The much-hyped robotaxi vision is facing delays and technical issues with no clear sign of near-term monetization. This is far from what bullish investors had hoped for.

Position Disclosure:
As mentioned before, I initiated a short position on Tesla 20 May 2025 at USD 353.63. A transaction instantly communicated to ETFMandate Premium Members via the Premium Newsletter.

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