Tesla shares skyrocket in May, fueled by Elon Musk's comeback
ElonMusk's exit from the Trump Administration signals a renewed focus on his business empire, principally Tesla and SpaceX. The electric vehicle manufacturer saw a 22% surge in May, marking the company's strongest month since November 2024.
The resurgence in investor confidence followed Musk's return to CEO duties at Tesla, after a tumultuous spell heading the Department of Government Efficiency. His tenure at DOGE was marred by public backlash and personal attacks on Tesla owners, damaging the brand and causing the stock to plummet to around $222 per share in March.
Wedbush analyst Dan Ives attributes a 20% stock overhang to Musk's White House presence. His exit, however, eases this burden, and Ives has set a price target of $500 on Tesla shares, signifying a 44% increase from the current price.
Musk has expressed his intentions to be fully committed to Tesla and his ventures, X, Starlink, and SpaceX, particularly focusing on SpaceX's Starship megarocket and Tesla's robotaxi. The robotaxi is slated for a June 12 rollout, with self-driving Model Y cars undergoing Austin public street tests.
Despite the hype, industry analysts cautiously observe that it is still early days for the robotaxi market. Nonetheless, Tesla is set to compete with established players like Waymo and Zoosks. Musk aims to launch the robotaxi service with 10 cars initially and scale up to 1,000 units in the near future.
In his farewell from the White House, Trump lauded Musk's achievements in the automotive sector, expressing appreciation for his service and innovation. Musk, meanwhile, has committed to leading Tesla for the next five years.
According to recent developments, Musk's ambitious plans for Tesla involve launching an ultra-affordable Model 2, priced around $11,590, and introducing the Tesla Starlink Pi tablet with solar-powered features and Starlink internet connectivity. Additionally, Musk is pushing for the development and deployment of the Starship megarocket, with plans to launch Version 3 by the end of 2025 and attempt a Mars mission in 2026, pending regulatory approvals and launch success. These endeavors aim to revolutionize the auto and tech industries, and further establish Musk's vision of life beyond Earth.
Savings from the surge in Tesla's stock could be utilized to invest in emerging markets, further boosting technology development in the automotive sector. With the launch of the robotaxi and plans for an ultra-affordable Model 2, Elon Musk is set to challenge established players in both the sports of automobile manufacturing and the tech industry.
