Elon Musk's Tesla Is A 'Multi-Trillion-Dollar Opportunity,' But Short-Term Outlook Is 'Shaky,' Says Expert

Tesla Inc. TSLA stock experienced a 0.73% dip in this record-setting week, as a renewed “war of words” between President Donald Trump and Tesla CEO Elon Musk added to existing pressures.

What Happened: While the EV giant faces a “shaky” short-term outlook, John Murillo, the chief business officer at B2BROKER, told Benzinga that its long-term potential remains a “multi-trillion-dollar opportunity.”

According to Murillo, several factors are currently weighing on Tesla’s stock. “The short-term TSLA outlook is shaky due to delivery misses, political risks, and high valuation,” he said.

“Tesla's stock has been under pressure recently. There are many downgrades from the top market voices, such as JPMorgan, who predicts around a 63% crash from the current levels, which is a big bearish signal.”

He also noted downgrades from Baird and Argus, attributing them to “robotaxi uncertainties and Musk’s political involvement.”

A recent Morgan Stanley survey, cited by Murillo, revealed that 85% of investors believe his politics hurt Tesla.

Despite these immediate challenges, Murillo maintains a strong sense of optimism regarding Tesla’s long-term prospects, particularly in autonomous vehicles and energy storage. “I see some optimism about the long-term potential of robotaxis and energy storage. It is still possible to see a 45% upside if Tesla can scale the robotaxi business,” he stated.

Murillo adds, “If Tesla can execute on its robotaxi and Optimus projects, it could be a multi-trillion-dollar opportunity.”

Why It Matters: To improve its short-term standing and capitalize on this long-term potential, Murillo suggests several strategic imperatives for Tesla.

“Tesla needs to stabilize its sales, especially in Europe and China. But most importantly, the company should address regulatory issues with the robotaxi service and reduce political risks by toning down Musk’s involvement.”

He also highlighted the importance of “diversifying the product line with more affordable models” and “improving supply chain localization to mitigate tariffs and geopolitical risks.”

Price Action: While Tesla dropped by 0.73% in the three and a half trading days of this week, it ended 0.10% lower at $315.35 per share on Thursday. The stock has experienced a 21.91% decline on a year-to-date basis, whereas it was up 25.38% over a year.

Benzinga Edge Stock Rankings shows that TSLA had a stronger price trend over the short, medium, and long term. Its momentum ranking was moderate, and its value ranking was poor at the 10.04th percentile. The details of other metrics are available here.

Price Action: On the truncated trading day of July 3rd, the SPDR S&P 500 ETF Trust SPY and Invesco QQQ Trust ETF QQQ, which track the S&P 500 index and Nasdaq 100 index, respectively, scaled fresh records and ended higher. The SPY was up 0.79% at $625.34, while the QQQ advanced 0.98% to $556.22, according to Benzinga Pro data.