Craig Irwin, Roth Capital Partners, joins 'Closing Bell Overtime' to talk Tesla's stock sliding as Elon Musk reignites his feud with President Trump.

Austin

Tesla's stock has fallen, pushing its market capitalization below $1 trillion and making it the weakest performer among the so-called 'Mag 7' stocks this year. Analyst Craig Irwin from Roth Capital Partners suggests that the removal of subsidies could ultimately benefit Tesla by reducing competition from other automakers, potentially increasing Tesla's market share.

However, Irwin notes that the renewed public feud between Elon Musk and former President Donald Trump could introduce policy risks for Tesla, especially regarding federal regulation of autonomous vehicles. While Musk's leadership and Tesla's technological advancements remain key strengths, the ongoing dispute with Trump may complicate the company's policy outlook and investor sentiment.

Tesla stock falls after Trump feud reignites

Well, today's move has dropped Tesla's market cap below the $1 trillion mark. It's now the worst performing Mag 7 stock of the year. But joining us now is Craig Irwin from Roth Capital Partners. Craig, your response to what we've seen and how it's playing out in Tesla's stock, especially as we do see the removal of these subsidies, which Elon Musk has actually been pretty vocal in saying he was OK, at least earlier in the year, OK with those going away. Yeah, I think subsidies going away is actually kind of a good thing for Tesla, because it's going to see the big OEMs retreat from the market. And Tesla's basically going to own this market for the foreseeable future. So their market share will go up. The pricing will have to adjust. And they've shown the ability to pass through price pretty effectively. But the long-term dominance of EV technology, at least in North America and Europe, is something that I think Tesla can look forward to with or without subsidies. But without, it's a much straighter shot. So in light of that, would you be buying on the dip here? You know, I think I would buy on the dip. We're probably looking at a very exciting earnings call. I think they're going to share with us what they're learning in Austin with the rollout of autonomous technology. I think some of the issues will start to be more clearly defined as far as what's needed for level 4 autonomous, which is really the key thing that Elon needs to communicate about. And then there is a little bit of hurry up out there. Optimus is something where Tesla needs to get more information out there. A lot of investors are very excited about that. There's another startup that I understand went into production or pre-production this month. You know, to frame out Optimus, they're talking to the supply chain about pricing for 30 million units. You know, humanoid robots, OK, that could be over the next 10 years. But there's some incredibly exciting things in front of us. And I think Elon's back in the saddle in a big way, you know, rearing to get everybody going and help people understand his vision. Yeah. But Craig, how much of a hero premium, right, for Elon Musk is built into Tesla stock? And how much of a policy premium is built in? Maybe the assumption that because Elon Musk was in so close with not just President Trump, but that band of billionaires around President Trump, he was going to get more of his policy wants attended to. Autonomous, you know, federal regulation at the autonomous level probably benefits Tesla potentially more than any other single stock. And if Trump doesn't like Elon Musk anymore, potentially going forward, does that kind of regulation that he would like or legislation get put in a risk category? Yeah, I mean, autonomous technology is not strategically important to the United States, right? What SpaceX is doing is, right, and their launch services are. So, you know, it doesn't make any sense for Elon to be fighting with Donald Trump. You know, they both have their egos. You know what? They deserve it. They're both wildly successful men. Elon needs to step back and say, you know, maybe I don't need to say some of these things. He's a purist. I get it, right? He wants to see the most perfect bill. He wants to see America crush it going forward. So does Donald Trump. Trump's a pragmatist, right? Trump's got to govern. He's got to get things through Congress. He's got to pass laws. So the two of them are kind of looking in the right direction, looking in the same direction, just looking at things differently. You know, I think, you know, the potential GOT impact is real. So, you know, Musk's not helping himself.

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