Elon Musk has returned to Tesla after the company’s stock took a major hit, dropping more than 30%. His comeback brought a wave of confidence among investors, leading to a sharp rise in Tesla’s stock price. On Monday, shares surged by 12%, closing at $278.39. This marks the company’s best performance since the November presidential election. The positive momentum continued into Tuesday, with the stock climbing another 2.8% to reach $286 by the afternoon. The Wedbush analyst and longtime Tesla advocate Dan Ives told Fortune about this sudden change and explained the possible reason. He said, “The stock was way oversold and is bouncing as Musk is back in charge and trying to balance DOGE and Tesla.”
Following the poor market performance of last week, the SpaceX CEO addressed Tesla employees. Musk said, “What I’m here to tell you is that the future is incredibly bright and exciting, And we’re going to do things that no one I think has even dreamed of,” he continued. Dan Ives also shared the same sentiment by saying, “Musk stepped up last week with the all-hands meeting, and that sent a much-needed positive signal to employees and investors.”
While investors are relieved to see Elon Musk returning to Tesla, the company continues to face fierce competition in the electric vehicle market. One of its biggest challenges comes from Chinese automaker BYD, which recently surpassed Tesla in annual sales. BYD reported an impressive $107 billion in revenue. This significantly outperformed Tesla’s $97.7 billion. This shift underscores the increasing dominance of Chinese EV manufacturers and the growing difficulty Tesla faces in maintaining its position as the industry leader. Rising production costs, supply chain issues, and market saturation further add to Tesla’s struggles. Additionally, as more automakers enter the EV space, Tesla must work harder to innovate and maintain customer loyalty. At the same time, it also needs to navigate regulatory changes and shift consumer preferences worldwide.
On the other hand, Elon Musk’s role in the Department of Government Efficiency (DOGE), a program designed to cut costs within the Trump administration, has triggered widespread controversy. Critics argue that the initiative’s aggressive budget reductions could negatively impact essential government services and public programs. Many view Musk’s involvement as overreaching which is leading to protests from both political opponents and concerned citizens who fear the consequences of these drastic financial measures. According to critics’ argument, the measures he is pushing are too extreme, leading to widespread protests. The frustration has escalated into acts of vandalism targeting Tesla showrooms and vehicles. In response to the growing unrest, President Donald Trump strongly condemned the attacks, calling those responsible “terrorists.” The situation has become serious enough that the FBI announced on Monday the formation of a dedicated task force to investigate these incidents and ensure the safety of Tesla properties.
Some analysts and critics, including Ives, have already warned, “There is still a brand crisis tornado in motion, but we are seeing many flood Tesla dealerships rallying behind Musk with these protests building”.
