- Tesla’s (TSLA) stock rose $10.59 or 4.76% to $232.64 on Tuesday, recovering from a 15.4% drop to $222.15 the previous day, after President Trump announced plans to buy a Tesla to support Elon Musk amid a market downturn tied to his trade war tariffs.
- UBS analyst Joseph Spak cut Tesla’s full-year delivery estimate to 1.7 million vehicles from Wall Street’s 2 million, maintaining a ‘Sell’ rating with a $225 target, highlighting weak sales data as the stock hit an intraday high of $237.06.
Tesla’s (TSLA) stock surged $10.59, or 4.76%, to $232.64 on Tuesday, rebounding from a steep 15.4% drop the previous day that saw shares close at $222.15—the lowest since October and the sharpest decline since September 2020. This recovery followed an intraday peak of $237.06, buoyed by President Trump’s vocal support on Truth Social, where he announced plans to purchase a “brand new” Tesla as a gesture of confidence in Elon Musk. Trump praised Musk for “putting it on the line” to aid the nation, framing his decision as a counter to what he described as an illegal boycott by the “Radical Left Lunatics” aimed at harming Tesla and Musk’s vision. The president’s endorsement, tied to his broader “Make America Great Again” rhetoric, highlights Tesla’s polarizing role in both political and market spheres.
Despite the uptick, Tesla faces significant headwinds, as evidenced by a UBS report from analyst Joseph Spak, who slashed his full-year delivery forecast to 1.7 million vehicles, down 5% from 2024 and well below Wall Street’s 2 million consensus-citing sluggish early-year sales. Spak, maintaining a ‘Sell’ rating and a $225 price target, amplified investor concerns already rattled by Monday’s tumble. Tesla’s volatility reflects broader market unease, exacerbated by Trump’s escalating trade war and new tariffs on major U.S. trading partners, which have triggered economic jitters and contributed to the stock market’s recent downturn. Musk, a prominent figure in Trump’s orbit, finds his company caught in this crossfire, with its stock swings mirroring the interplay of political rhetoric and economic policy.
Trump’s pledge to buy a Tesla underscores his personal stake in Musk’s success, positioning the automaker as a symbol of American innovation amid his administration’s challenges. Yet, the stock’s 15.4% Monday drop and Spak’s bearish outlook suggest that Tesla’s path forward hinges on more than symbolic gestures—delivery numbers and market sentiment will ultimately dictate its trajectory. For now, the $10.59 bounce offers a reprieve, but Tesla remains a lightning rod in an increasingly turbulent economic landscape.
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