Tesla Inc.’s (TSLA) shares have recently experienced a significant rebound, gaining 13.9% in the past week after a dismal start to the month due to a feud between CEO Elon Musk and former US President Donald Trump. This recent turnaround is largely attributed to Musk’s attempt to mend ties with the U.S. government.
However, despite this positive development, concerns still linger over Tesla’s government support and potential regulatory uncertainty. In April, Tesla reported its lowest sales in three years, which may have contributed to Musk’s public apology for his previous comments about Trump. Analyst Dan Ives of Wedbush believes that the reconciliation between Musk and Trump is “mutually necessary” for Tesla’s growth trajectory, especially with the upcoming launch of Tesla’s robotaxi service Cybercab on June 22.
Meanwhile, investors should exercise caution when considering investing in Tesla-heavy exchange-traded funds (ETFs) such as Simplify Volt TSLA Revolution ETF (TESL), Nightview Fund NITE, Roundhill TSLA WeeklyPay ETF (TSLW), and Consumer Discretionary Select Sector SPDR Fund (XLY). While some of these ETFs have seen significant gains in recent days, others have experienced losses.
In particular, it is essential to monitor the government’s stance on supporting Musk’s companies, as any change in this policy could impact Tesla’s stock price. With the current average brokerage recommendation standing at 2.77 out of 5, investors should weigh their options carefully before making a decision.
Ultimately, investors should keep a close eye on Tesla’s growth trajectory and regulatory environment to determine whether it is time to ride the Tesla ETF wave.
Source: https://www.zacks.com/stock/news/2502918/time-to-ride-tesla-etfs-on-recent-stock-rebound-robotaxi-launch