If the alliance between Elon Musk and Donald Trump proves to be short-lived—which seems plausible given their mutual need to always be in the driver’s seat—and if the current Tesla rally is partially fueled by the perceived strength of their relationship, could this present a case for shorting Tesla? While there’s no direct tension yet, some news outlets have sarcastically referred to Musk as an ‘unelected figure’ eager to steal the spotlight, suggesting that his high-profile actions might overshadow others.
This raises the question: Is Tesla’s current rally driven by the perceived good relationship between Musk and Trump, or is it rooted in a genuine improvement in Tesla’s revenue outlook? If the rally is supported by a stronger business foundation, this speculative angle may hold little weight. Conversely, if public perception and narratives are the primary drivers, the risk of a fallout could present a case for downside potential.
For disclosure, while I am currently long on Tesla, my holdings are relatively small. Nevertheless, I believe this thesis deserves further exploration for those considering speculative positions.