The following content does not constitute investment advice. The author holds no shares in any of the stocks mentioned.
Elon Musk’s New Role and Speculation
Elon Musk has taken on a new role as head of the Department of Government Efficiency (DOGE), moving into the West Wing office of the White House. Almost immediately, speculation about his relationship with President Trump has surfaced, raising questions about their previously solid camaraderie.
The Stargate Project Announcement
In a significant development, President Trump officially unveiled the Stargate project, which is set to attract a staggering investment of at least $500 billion over the next four years. This initiative aims to bolster the United States’ AI infrastructure, a move that has far-reaching implications.
Musk’s Discontent with OpenAI’s Role
Complicating matters further is the announcement that OpenAI will play a crucial part in the Stargate initiative, alongside tech giants Oracle and SoftBank. This particular aspect seems to have displeased Musk, who publicly challenged OpenAI’s recent X post that declared an immediate deployment of at least $100 billion in capital, remarking, “they [Stargate participants] don’t actually have the money.”
Tensions Between Musk and OpenAI
The relationship between Musk and OpenAI has been contentious for some time, as they not only compete in the realm of large language models (LLMs) but Musk has also taken legal action against OpenAI for transitioning to a for-profit model. This ongoing rivalry adds an extra layer of complexity to the situation.
Oppenheimer Keeps $TSLA at Market Perform Without a Price Target, noting that they “continue to see significant risk to Trump/Musk’s relationship potentially jeopardizing TSLA’s benefits from it.”
Analyst commented: “We anticipate Tesla to continue focusing resources and its… pic.twitter.com/3gLydSOGzO
— Wall St Engine (@wallstengine) January 23, 2025
Oppenheimer’s Insights on Tesla
In light of these developments, Oppenheimer has released an in-depth analysis discussing the potential risks for Tesla. They express concern that Musk’s political maneuvers could jeopardize the company’s advantages stemming from its association with Trump. The report states:
“We anticipate CEO Elon Musk will highlight his impact on the US political landscape, but continue to see significant risk to Trump/Musk’s relationship potentially jeopardizing TSLA’s benefit from it.”
According to Oppenheimer, Tesla is likely to shift its focus toward enhancing its Physical AI technology, while tempering expectations for vehicle sales growth in 2025. This adjustment is believed to be in preparation for the anticipated launch of the Model 2 and autonomous vehicle features.
Anticipated Improvements and Expectations
The analysis further indicates:
“We expect improvement on mean time between failures (MTBF) and total miles driven, but will be looking for details on system ground truthing and TSLA’s ability to streamline/customize foundation models for autonomy as better indicators of progress.”
Future of Musk and Trump’s Relationship
With all these elements at play, one cannot help but ponder: Will the cordial relationship between Elon Musk and President Trump withstand the mounting tensions that seem inevitable? We welcome your thoughts on this evolving situation in the comments section below.
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