Musk Chaos Could Oust Tesla From Mag 7, Making Way For Broadcom

As the Trump-Musk feud shows no signs of abating and Tesla Inc. TSLA stock has fallen more than 20% in just six weeks, questions mount over whether the electric carmaker still deserves its spot among the elite “Magnificent Seven” tech giants.

On Monday, shares of Tesla plummeted 7.5% after Elon Musk announced his intention to form a new political faction, the “America Party.”

Broadcom Rises As Tesla Stumbles: Is Time For A Mag 7 Swap?

Broadcom Inc. AVGO might be gaining momentum as a potential replacement for Tesla Inc. TSLA in the so-called "Magnificent Seven" – which also include Nvidia Corp. NVDA, Microsoft Corp. MSFT, Apple Inc. AAPL, Amazon.com Inc. AMZN, Alphabet Inc. GOOGL and Meta Platforms Inc. META.

Tesla has dropped to the 11th-largest company in the world by market capitalization, now trailing Berkshire Hathaway Inc. BRK BRK, with a valuation of $937 billion.

Broadcom, meanwhile, has climbed to a market capitalization of $1.320 trillion, making it the eighth-largest globally and seventh in the U.S., right behind Meta.

Broadcom has crushed Tesla on total return over every key period:

• Year-to-date: Broadcom up 18.5% vs. Tesla down 27.5%
• 6-month: Broadcom up 18.1%, Tesla down 28.7%
• 1-year: Broadcom up 59.8%, Tesla up just 18.8%
• 3-year: Broadcom up 505.9%, Tesla up 28.8%
• 5-year: Broadcom up 876.2%, Tesla up 263.3%
• 10-year: Broadcom up 2,467.2%, Tesla up 1,468.1%

And that raises a big question: Should Broadcom replace Tesla in the market's most-watched group of U.S. mega-cap tech stocks?

Musk's Political Drama Adds To Tesla's Slide

Until May 2025, Musk was a major ally of President Donald Trump—donating over $100 million during the 2024 Republican campaign and even leading the administration's Department of Government Efficiency.

But everything changed when Trump backed the "Big Beautiful Bill"—a sweeping tax cut and spending plan Musk publicly denounced as reckless.

In early June, Musk launched a wave of attacks on Trump via X, accusing him of "bankrupting America" and calling for the bill to be scrapped. Trump fired back on Truth Social, threatening to cut off government support for Tesla and SpaceX.

Just a month later, Musk escalated again—launching a new political movement, the America Party, aimed at breaking the two-party system. The group is already active, with Tesla CFO Vaibhav Taneja named as its treasurer, according to federal filings.

Now, Tesla is more than an electric car company—it’s tied to a political campaign. That's a risk many investors didn't sign up for.

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Image created using artificial intelligence via Midjourney.