The highly public fallout between Elon Musk and Donald Trump has rattled markets and triggered a steep sell-off in Tesla shares—dropping over 14% in a single day to $284.57. But savvy investors know: panic often creates opportunity.
While many are focused on the political drama and its potential to reshape EV tax incentives, it’s important to zoom out. Tesla is not just an electric car company. It’s a diversified innovation powerhouse spanning renewable energy, energy storage, and next-gen technology like autonomous driving and robotaxis.
Despite short-term pressure, Tesla’s fundamentals remain robust:
• 48% share of U.S. EV sales (Q3 2024)
• Diverse revenue streams beyond cars—like energy storage and solar
• Ability to reduce pricing or pivot to leasing, which skirts some tax credit issues
• Core buyer resilience: 75% of IRA-qualified EV buyers would purchase without subsidies; 56% of current EV owners earn over $100K/year
Yet, it's not without risk. The loss of a $7,500 tax credit could deter lower-income buyers, especially for entry-level models like the Model 3. At the same time, demand softening in China and rising global competition are additional headwinds.
Thematic Opportunity: Car of the Future Portfolio
For those looking beyond the headlines, the Car of the Future thematic portfolio offers targeted exposure to the disruption of the automotive value chain. It includes leading automakers, breakthrough tech firms, and component innovators—all positioned to benefit from transformation across the sector.
• Annual return since Nov 2016: 15.21% p.a.
• Dividend yield: 1.63%
• Tesla’s 12-month return: 94.29%
(as of 6 June 2025, Source: HALO)
The recent dip in Tesla’s share price could represent a strategic entry point. With current levels around $284.57, long-term investors might find this the perfect moment to act—not react.
