[Christian Harris]

Tesla’s stock rebounded 3.79% on Tuesday, closing at $230.58, after suffering its worst single-day decline in nearly five years with a 15% drop on Monday.

The recovery was driven by CEO Elon Musk’s pledge to double Tesla’s vehicle production in the US over the next two years, a move aimed at strengthening the company’s domestic manufacturing footprint and easing concerns about slowing sales in key markets like China and Europe.

Adding to the positive sentiment, former President Donald Trump publicly endorsed Tesla, announcing plans to purchase a vehicle and displaying it on the White House lawn.

Trump’s support, coupled with his labelling of recent vandalism at Tesla facilities as “domestic terrorism,” provided a boost to investor confidence, signalling a strong political backing for Musk and his company.

Despite the recent volatility, Morgan Stanley remains bullish on Tesla, setting a $430 price target and calling the stock’s recent decline a buying opportunity.

Analyst Adam Jonas reiterated an “overweight” rating, emphasising Tesla’s potential as an “AI compounder” and highlighting upcoming catalysts like its Full Self-Driving (FSD) technology and future robotaxi services.

Jonas also noted that Tesla’s current challenges, including weak global sales and negative media narratives around Musk’s political activities, could present an entry point for long-term investors.

However, some analysts caution that Musk’s growing involvement in political matters and leadership distractions could weigh on Tesla’s brand and operational focus.

Wedbush Securities analyst Dan Ives, while maintaining an “Outperform” rating, stressed the need for Musk to prioritise Tesla’s core business to prevent further volatility and restore investor trust.

What’s your take on whether this recovery is sustainable? 📈🤔

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[ABTrading 87]

Tesla’s stock performance is decoupling from its fundamentals, with market sentiment and external factors playing an outsized role in its valuation.

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[Christian Harris]

You’re right. Tesla’s stock seems to be living in its own world right now—way more about vibes than fundamentals. 📉

Between Elon Musk’s political drama, protests, and boycotts, it’s clear that external factors are driving a lot of the volatility.

Even though Tesla’s still a leader in EVs, competition’s heating up, and sales are slipping in key markets like Europe and China. Combine that with Musk’s distractions, and it’s no wonder investors are spooked.

What’s your take—do you think Tesla can bounce back, or is this a sign of bigger challenges ahead? 🤔📊

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[ABTrading 87]

I do reckon it will be back (even if it’s down over 30% in the last month). For me it’s just not a stock you can read purely looking at charts and historical price data. It’s a different, unpredictable beast that doesn’t play by standard rules.

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