Tesla stock rises 12% following a 30% drop after Elon Musk did this
ByTuhin Das Mahapatra
Mar 26, 2025 10:55 AM IST
Elon Musk reassures Tesla employees about a bright future as shares rise, but the company still faces challenges amid protests.
Elon Musk is making a comeback at Tesla as the EV giant’s stock plummeted by more than 30%.
Elon Musk looks on during a Cabinet Meeting in the Cabinet Room of the White House March 24, 2025 in Washington, DC. (Photo by Brendan Smialowski / AFP)(AFP)
Elon Musk looks on during a Cabinet Meeting in the Cabinet Room of the White House March 24, 2025 in Washington, DC. (Photo by Brendan Smialowski / AFP)(AFP)
This week, Musk’s return to site made investors really happy, with Tesla shares soaring 12% on Monday to close at $278.39—their best performance since the November presidential election. By Tuesday afternoon, the stock had climbed another 2.8% to $286.
“The stock was way oversold and is bouncing as Musk is back in charge and trying to balance DOGE and Tesla,” Wedbush analyst and longtime Tesla advocate Dan Ives told Fortune.
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Notably, last week the SpaceX boss addressed Tesla employees following the poom market profile. “What I’m here to tell you is that the future is incredibly bright and exciting,” Musk expressed. “And we’re going to do things that no one I think has even dreamed of.”
Ives also noted the same stating, “Musk stepped up last week with the all-hands meeting, and that sent a much-needed positive signal to employees and investors.”
BYD outpaces Tesla as Musk grapples with protests
Despite investor relief over Musk’s return to Tesla, the company still faces intense competition. Chinese automaker BYD recently surpassed Tesla in annual sales, generating $107 billion in revenue compared to Tesla’s $97.7 billion.
Musk's recent role in the Department of Government Efficiency (DOGE), a cost-cutting initiative he has been helming to reduce Trump administration's cost faced huge backlash.
The Tesla boss's decisions has led to increased protests and even vandalism at Tesla showrooms and on Tesla vehicles. The situation has escalated to the point where President Donald Trump has labelled those targeting Tesla property as “terrorists.” In response, the FBI announced the formation of a task force on Monday to investigate the incidents.
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While some analysts, including Ives, have 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,” Ives explained.
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