Tesla stock is a favorite among retail traders, and a drop set off by the Trump-Musk feud could be a catalyst for a market pullback, Marko Kolanovic said.

The rift between President Donald Trump and Tesla chief Elon Musk has captivated the world as a political drama, but it has also become a Wall Street spectacle, highlighting the risk to equity markets from the world's biggest stocks.

Traders dumped Tesla after Musk quickly responded to Trump's criticism with social media posts that stepped up criticism of the president's tax bill.