- Tesla (TSLA) director Joseph Gebbia’s purchase of over $1 million in shares at $256 signals confidence in the company’s future, despite a 30% year-to-date stock decline.
- Elon Musk’s DOGE role has caused brand backlash and a 13% drop in Q1 2025 deliveries, but his reduced involvement and Tesla’s focus on affordable models and autonomous Cybercab by mid-2025 are driving optimism.
Tesla director Joseph Gebbia’s purchase of over $1 million in Tesla (TSLA) shares at $256 per share signals strong confidence in the company’s future, despite recent challenges. This insider buy comes as Tesla’s stock trades at $285.55 in premarket trading, reflecting a slight dip of less than 0.20%. With a market capitalization of $920 billion, Tesla has seen a robust 43% year-over-year gain, though it remains down nearly 31% year-to-date, largely due to turbulence surrounding CEO Elon Musk’s role in the Trump administration’s Department of Government Efficiency (DOGE).
Musk’s high-profile DOGE involvement, aimed at slashing federal spending, has sparked widespread backlash, including protests and vandalism at Tesla showrooms. This has hurt Tesla’s brand, once synonymous with progressive climate goals, alienating some consumers and contributing to a 13% drop in first-quarter 2025 vehicle deliveries compared to the previous year. The company reported a 70%-plus plunge in profits, with automotive revenue falling 20%, exacerbated by global trade tensions and Musk’s divided focus. Shares have faced volatility, losing over 50% of their value since a December 2024 peak, though Gebbia’s investment suggests optimism about a recovery.
Tesla is navigating these challenges by advancing its product lineup, with plans for an affordable model and a fully autonomous Cybercab by mid-2025. Musk’s announcement to scale back DOGE involvement to one or two days a week starting in May has boosted investor sentiment, as evidenced by stock’s surge post-earnings. Gebbia’s purchase aligns with this pivot, reinforcing Tesla’s long-term potential in electric vehicles and autonomous technology, even as it contends with competitive pressures from rivals like BYD and lingering brand perception issues.
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