What's happening with Tesla stock is reminiscent of the saying “easy come, easy go.” First, the company's stock skyrocketed after the president-elect's Musk-backed victory.     

Everyone was saying that Elon had hit the lottery with his bet on Trump and that the 47th U.S. president would spend the next two years lobbying on behalf of Tesla's interests and Musk's empire in general.       

But many overlooked the fact that we are talking about two individuals with, to put it mildly, complicated personalities: leaders with big egos. This means that conflict is inevitable.    

And now, less than two weeks before the inauguration (set for Jan. 20), rumors are already swirling that President-elect Trump is complaining that tech billionaire Elon Musk “hangs around a lot.”       

If the duo ends up unraveling, Musk's empire could face significant challenges. Instead of support, Musk could find a formidable foe in Trump, which could lead to further investigations.    

Going forward, Tesla stock will likely be influenced by the company's fundamentals and the political dynamic between its CEO and those in power, not only in the US.      

One misstep and the stock could come under pressure. Also, note that Tesla is already facing legal problems: federal authorities are investigating its remote parking following several accidents.     

Another potential setback for Tesla could be that CATL, its leading EV battery supplier, has recently been blacklisted by the Pentagon for its alleged connections to the Chinese military.       

That being said, as long as the U.S. Department of Commerce doesn't add the company to its blacklist, there shouldn't be any supply issues or a ban on American investments in CATL.     

Speaking of risks, it is worth noting that even with the recent pullback, Tesla stock has almost doubled in just a few months. On October 21, it was trading at $219 and now hovers around $394.    

On top of that, the company might face increased competition from low-cost manufacturers from China, weakening demand for EVs, delays in product launches, and changes in EV regulations.   

Still, Bank of America analyst John Murphy raised his price target for Tesla to $490 from $400. He sees growth catalysts in core auto sales, robotaxis, Optimus, and energy generation & storage.     

Chinese policymakers will likely exceed expectations with fiscal and monetary stimulus in 2025, helping to offset the impact of tariffs. But will it be enough to achieve 5% growth?      

However, with the risks mentioned earlier, he downgraded the stock from "Buy" to "Neutral," signaling that while the upside is still there, the execution risk is elevated.