🚗 1. Stock surge on robotaxi progress
Tesla shares jumped approximately 3.2 % to around $318 on Tuesday, fueled by a video showing a driverless Tesla operating in Austin, raising expectations of an imminent robotaxi debut and pushing its market cap back above $1 trillion barrons.com.
🔁 2. Easing Musk–Trump feud
Investor confidence rebounded as tensions between Elon Musk and Donald Trump cooled: Musk deleted inflammatory posts, retweeted Trump content, and Trump stated he’s open to talking and keeping his Model S, helping Tesla stock recover ~60 % of its earlier dip businessinsider.com.
🔍 3. Mixed analyst outlook
- Wells Fargo warns of a weak quarter ahead (deliveries expected down in multiple regions) and maintains a Sell rating barrons.com.
- Baird recently downgraded to Hold, citing uncertainties around robotaxi expectations, Musk’s visibility, EV competition, and potential removal of tax credits. Yet they note that a robotaxi launch as early as June 12 could shift sentiment finance.yahoo.com
🎯 Why it matters
| Key Driver | Impact |
|---|---|
| Robotaxi rollout | Tesla’s autonomous taxi service, expected to begin in Austin by ~June 12, signals a major strategic pivot into AI-led mobility, potentially unlocking massive value—Wedbush sees a multitrillion-dollar opportunity . |
| Politics | With the Musk–Trump feud cooling, political overhang on Tesla’s regulatory and subsidy environment may diminish, reducing investor anxiety . |
| Growth concerns | Despite enthusiasm, Tesla faces challenges—slowing demand in China and Europe, delivery forecasts down, and mixed analyst sentiment on near-term fundamentals . |
✅ Bottom line
Tesla’s stock rally is being driven by a mix of robotaxi excitement and the softening of a political feud that rattled investors. Still, questions about delivery momentum and valuation expectations remain. The market is closely watching the robotaxi rollout, and how effectively Tesla can deliver on its promise could define its next phase.
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