Tesla Inc (TSLA) Stock: Cathie Wood Doubles Down While Others Flee

TLDR

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Tesla stock fell 1.8% Monday morning to $289.84 as investors brace for potential robotaxi service launch this week
Stock dropped nearly 15% last week after Elon Musk’s public feud with President Trump over spending bill
Tesla’s robotaxi service could launch in Austin, Texas as early as June 12, though company hasn’t confirmed exact date
Milan Kovac, Tesla’s head of engineering for humanoid robot Optimus, announced his departure Friday
Cathie Wood maintains bullish stance on Tesla despite political tensions, with stock remaining largest holding in ARKK at 10.3%

Tesla shares opened lower Monday morning, dropping 1.8% to $289.84 as investors navigate dual uncertainties. The electric vehicle maker faces both political headwinds from CEO Elon Musk’s public spat with President Trump and anticipation around a potential robotaxi service launch this week.

The stock endured a brutal week, plummeting nearly 15% after Musk escalated criticism of Trump’s tax and spending bill. The war of words on social media wiped over $150 billion from Tesla’s market value on Thursday alone. Shares recovered 3.7% Friday as tensions appeared to cool slightly.

Musk’s clash with Trump centers on what the CEO called the “One Big Beautiful Bill,” which he argued would deepen the national deficit. Trump fired back by questioning Musk’s contributions and threatening to cut federal contracts with Tesla and SpaceX. The public feud represents an unprecedented conflict between a sitting president and a major business leader conducted entirely on social media.

The political drama comes at a crucial time for Tesla. Reports suggest the company could launch its robotaxi service in Austin, Texas as early as June 12. Tesla management confirmed during their April 22 earnings call that the launch remained on track for June, though the company hasn’t provided precise details.

🔥 Tesla is set to launch the Robotaxi service in Austin, Texas, as early as next week, on June 12.
The general public isn’t ready for this major innovation and doesn’t yet realize how deeply it will transform transportation.pic.twitter.com/naVHPiqddz
— Tesla Newswire (@TeslaNewswire) June 5, 2025

Before the Trump-Musk feud erupted, Tesla stock had surged more than $100 per share, gaining about 45% since the April earnings call. Investors have shown strong optimism that AI-related products will unlock more profitable growth for the EV maker.

Executive Departures Continue

Tesla faced another personnel challenge Friday when Milan Kovac announced his departure. Kovac served as head of engineering for Tesla’s humanoid robot Optimus, a key component of the company’s AI ambitions. The robot business remains in early stages, though Musk projected building thousands of robots in 2025 and ten times that number in 2026.

Executive turnover has become routine at Tesla. Andrej Karpathy, who led self-driving efforts, left in 2022. Former CFO Zach Kirkhorn departed in 2023, followed by Rebecca Tinucci, head of vehicle charging, in 2024.

Wood Remains Bullish

Cathie Wood of ARK Investment Management maintains her confidence in Tesla despite the political turbulence. Her ARKK Innovation ETF trimmed Tesla holdings ahead of the robotaxi launch but retained the stock as its largest position at 10.3% of the portfolio.

Wood suggested Musk’s confrontation with Trump could be strategic, helping distance the CEO from government ties. She noted the importance of protecting Tesla’s operations in China, especially given Trump’s increasingly tough stance on the country.

“He works really well under pressure,” Wood said of Musk, emphasizing her continued faith in his leadership. She argued Tesla’s board should support Musk in pursuing his broader economic vision of helping reduce the U.S. budget deficit through rapid growth.

Wood acknowledged being accustomed to Tesla’s volatility and has actively adjusted positions to capitalize on sharp price swings. Her comments underscore the polarized nature of Tesla investment sentiment.

Wall Street analysts maintain a neutral stance on Tesla stock. The consensus rating stands at Hold, with 16 Buy ratings, 10 Holds, and 10 Sells assigned over the past three months. The average price target of $285.91 suggests potential 3% downside from current levels.

Tesla stock continues trading with high volatility as investors weigh multiple crosscurrents. The robotaxi launch could provide a catalyst for renewed growth optimism, while political tensions add an unpredictable element to the investment equation.

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