As EV giant Tesla Inc. (NASDAQ:TSLA) struggles to regain its mojo, Craig Irwin of Roth Capital Partners warned that CEO Elon Musk's growing rift with President Donald Trump could complicate the company's push into autonomous vehicle regulation.
What Happened: On Tuesday, Irwin said that the removal of electric vehicle subsidies, something that Musk had previously stated he was “okay” with, could strengthen Tesla's position by forcing legacy automakers to pull back, while speaking on CNBC’s “Closing Bell Overtime.”
“Tesla's basically going to own this market for the foreseeable future,” he said.
However, looking ahead, he noted that federal support remains key for autonomous driving technology, and political relationships could make all the difference.
“It doesn’t make any sense for Elon to be fighting with Donald Trump,” Irwin said. “They both have their egos. You know what? They deserve it. They’re both wildly successful men.” He further says that Musk needs to take a step back and rethink what he says.
While Musk is described as a “purist” who wants to see ideal legislation, Irwin pointed out that Trump is a pragmatist who must navigate Congress to get laws passed. If Musk's relationship with Trump deteriorates, regulatory priorities like autonomy could be deprioritized.
Despite the policy risk, Irwin said he would consider buying Tesla shares on the dip, citing potential updates around Level 4 autonomy and the humanoid Optimus robot in the upcoming earnings call.
Why It Matters: Irwin’s comments come amid the reigniting of the feud between Musk and Trump this week.
Musk publicly criticized Trump’s “Big, Beautiful Bill,” calling it “political suicide,” alongside “utterly insane” and “destructive,” citing the loss of jobs and the immense damage that it is set to cause for the strategic capabilities of the United States.
Trump has since hit back, saying that Musk is one of the biggest recipients of subsidies, and without it, he “would probably have to close up shop and head back home to South Africa,” he said in a Truth Social post on Tuesday.
He further went on to state that “Electric cars are fine, but not everyone should be forced to own one,” leading to a pullback in Tesla shares on Tuesday.
Price Action: Tesla shares were down 5.34% on Tuesday, trading at $300.71, due to the feud, but they’re up 1.05% after hours.
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