Tesla stock has seen its best month since November 2024, surging nearly 22% as investors welcomed CEO Elon Musk’s return to the helm after a few rocky months. Musk’s tenure was marked by public backlash and personal attacks on individual Tesla car owners, leading Wedbush Analyst Dan Ives to state that his role in the Trump Administration created brand damage.
However, with Musk’s departure from the Department of Government Efficiency (DOGE), investors are optimistic about the company’s future. The analyst believes there is a 20% overhang on the stock tied to Musk’s involvement in the White House, which is now alleviated. Ives has set a price target of $500 for Tesla shares, implying a 44% rise.
Musk has shared his vision for the future of Tesla, including its highly anticipated robotaxi rollout set for June 12. The company is testing self-driving Model Y cars on public streets with no incidents and plans to launch self-delivery services from factory to customer next month.
Constellation Research founder Ray Wang notes that while there is hype surrounding Tesla’s robotaxi initiative, it’s still early days. Musk has predicted the rollout will start with 10 units, which he believes will eventually reach 1,000. However, Wang warns that predicting exact numbers can be challenging.
Musk’s return to the helm has been met with praise from President Donald Trump, who thanked the world’s richest man for his service as DOGE was officially concluded on Friday. Musk plans to lead Tesla for the next five years, aiming to focus on innovative technologies like xAI and Starship launch.
Source: https://www.foxbusiness.com/markets/elon-musks-return-drives-tesla-stock-surge-may