The analysts also explained that “Tesla appears to have the most to lose” among car companies in the U.S. from the “shifting regulatory backdrop,” referring to Trump’s potential rollback of electric vehicle tax credits.

Elon Musk, the richest person in the world, says backlash for his involvement in the Trump administration cutting spending and jobs is hurting the stock price of Tesla, his public company.

With Tesla underperforming in both the stock market and the public eye, some competitors are eyeing a gap in the market.

Investment bank Goldman Sachs has warned that U.S. President Donald Trump's sweeping new tariffs may spike inflation and shrink the economy in coming months to the point of a recession.

The US economy faces a growing risk of a recession as surging tariffs threaten to stunt growth, reignite inflation and lift unemployment, according to Goldman Sachs.

Goldman believes the tax-like impact on real disposable income and consumer spending from Trump's tariff policies will hurt U.S. growth prospects.