Tesla’s stock has rebounded after a sharp decline caused by a public feud between CEO Elon Musk and former President Donald Trump. On Wednesday, Tesla shares rose for the fourth consecutive day, climbing above the price they closed at on June 4, just before the conflict began.
The dispute led to a dramatic one-day loss of about $150 billion in Tesla’s market value. However, Tesla’s market capitalization has now recovered to over $1 trillion, according to Visible Alpha data.
Musk expressed regret over some of his critical comments about Trump, saying he “went too far” without specifying which remarks. This easing of tensions appears to have reassured investors, who seem to have moved past the controversy.
The incident had raised concerns about political risks for Tesla, but analysts now see the company’s future more positively.
Tesla is shifting its image from a traditional carmaker to a leader in robotics, artificial intelligence, and autonomous vehicles. The planned launch of Tesla’s robotaxi service in Austin, Texas, on June 22 is a key part of this strategy.
Piper Sandler analysts noted that this rollout marks a significant milestone and expect Tesla’s stock to maintain upward momentum in the coming weeks.
Other factors supporting Tesla’s stock include improving investor sentiment driven by positive inflation data and progress in trade negotiations.
Despite previous downgrades and challenges such as the expiration of electric vehicle tax credits and rising competition, Tesla’s innovation in self-driving technology continues to boost confidence in the company.
In summary, Tesla’s stock has recovered strongly after the Musk-Trump feud cooled, with the upcoming robotaxi launch providing further optimism for investors.
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