Tesla (TSLA) shares cratered nearly 15% on Thursday after President Donald Trump said he was “disappointed” in billionaire Elon Musk’s opposition of his “One Big Beautiful Bill.”
Musk has been a vocal adversary of the said legislation that he’s concerned will exacerbate federal deficits. In his recent X post, Tesla’s chief executive even called the pending tax-and-spending bill a “disgusting abomination.”
Despite today’s weakness, Tesla stock is up more than 25% versus its year-to-date low.
Why Is Trump’s Spending Bill Bad for Tesla Stock?
According to Trump, the billionaire is lashing out at his tax-and-spending bill primarily because it proposes elimination of the EV credits that have long been an advantage for Tesla.
To be fair, there’s reason for Musk to be concerned about the potential repeal of the EV tax credits under the Trump administration, since it could prove a “monkey wrench” for TSLA shares in the near term, warned Jed Dorsheimer – a William Blair analyst in a recent CNBC interview.
That said, the investment firm remains bullish on Tesla stock for the next 12 months.
Why Is Dorsheimer Bullish on TSLA Shares?
Jed Dorsheimer remains constructive on the EV stock primarily because Elon Musk has already confirmed plans of staying at the helm for another five years.
Speaking with CNBC, the analyst also expressed confidence that TSLA’s upcoming robotaxi launch will drive the company’s stock price up further in the second half of 2025.
Plus, Tesla’s sales have started showing early signs of recovery in some markets as well, including Norway and Australia. In fact, its sales climbed sharply in the latter to a 12-month high of 3,897 in May.
How Wall Street Recommends Playing Tesla
Investors should note, however, that Dorsheimer is among the more bullish Wall Street analysts on Tesla stock – others are not nearly as excited about what the future holds for it.
The consensus rating on TSLA shares currently sits at “Hold” only with the mean target of about $292 indicating potential upside of 3% from current levels.
