TEXAS – Tesla, Inc. (TSLA) recently reached its highest stock price in seven months, with values returning to highs last seen in February 2025. Tesla shares in the electric car firm have jumped nearly 20 percent since the end of April.
This reflects a new wave of confidence among investors after a troubled spell involving CEO Elon Musk’s controversial government role and strong criticism from left-leaning voices. Here, readers will find what’s driving Tesla’s latest share price rise, how political storms have affected the brand, why investors are buying back in, and what experts see coming next.
Musk’s Return Drives Stock Bounce
In early 2025, Tesla’s stock dropped sharply, losing 55 percent of its value from a $1.5 trillion peak in December 2024 to a low in March. Observers blamed this drop mostly on Musk’s focus on the Trump administration’s Department of Government Efficiency (DOGE), a project to reduce federal spending.
The move sparked protests and even vandalism at Tesla stores. The company posted its worst results since 2022, with net income falling 71 percent to $409 million, revenues dropping 9 percent to $19.3 billion, and deliveries down 13 percent in the first quarter of 2025. Many experts pointed to Musk’s split attention as the cause, claiming his political actions turned away key customers, especially in Europe, where sales plunged 45 percent in January.
Things started to look better by late April, when Musk said he would cut down on his DOGE commitments and focus mainly on Tesla from May onwards. The announcement led to a strong response, with Tesla’s stock rising 9 percent on 24 April and another 10 percent the next day.
The company’s market value gained $158 billion in just two days. Investors and analysts felt Musk’s refocus was key to stabilizing the company. CFRA Research’s Garrett Nelson said Tesla remains on a solid growth track despite recent difficulties. The new surge in Tesla’s share price points to renewed belief in Musk’s vision for the company’s future.
Political Backlash Hits Brand Reputation
Musk’s involvement with the DOGE project and his open backing of right-wing issues, such as Germany’s AfD party, led to strong pushback from Democrats and activists. Protests and acts of vandalism, including graffiti at a charging station in Salt Lake City, picked up speed after Musk’s involvement in federal layoffs and budget cuts.
Critics argued these moves pushed away Tesla’s main buyers, who often value progressive politics and environmental issues. Sue Benson at The Behaviours Agency said the damage to Tesla’s brand could be long-lasting, noting, “No product can undo the way many now view Musk due to his political choices.”
Lawmakers like Senator Cory Booker spoke out against Musk’s role with DOGE, accusing him of putting personal politics ahead of Tesla’s business. Social media sites, including X, became hotbeds for complaints, with some owners trying to sell their vehicles, adding more Teslas to the used car market.
Musk blamed the dip in sales on the general economy, but analysis from Gene Munster showed that Tesla lowered its 2025 delivery outlook from 2 million vehicles to 1.7 million—a clear drop in projected growth.
Why Investors Are Backing Tesla Again
Despite the political unrest and brand woes, many investors are showing faith in Tesla once more. For one, Musk’s decision to devote more time to Tesla has eased worries about his attention being elsewhere. Backers believe this will help the company lead in areas like self-driving tech and robotics.
Tesla’s new robotaxi service, which started in Austin in June 2025, has attracted plenty of interest, especially with Musk saying millions of Teslas will run fully on their own by late 2026. Tesla’s push to release a cheaper model in the first half of 2026 has also raised hopes it can take on competitors like BYD from China.
Others see Tesla’s earlier stock fall as an overdone panic. Dan Coatsworth from AJ Bell called the market’s reaction an opportunity, suggesting the low price tempted bargain hunters. Even with a price-to-earnings ratio over 100, those betting on Tesla’s future in automation and robotics believe this can be justified. Musk has repeated that the bulk of Tesla’s value may soon depend on AI-driven tech.
Third, Tesla’s ability to deal with tariffs and global supply chain issues has helped calm investor worries. Although tariffs like Trump’s 25 percent levy on imports from China impact sourcing, Tesla’s main production in the US gives it an edge over foreign brands. Musk’s relationship with President Trump, despite some public disagreements, has also sparked talk of possible regulatory support for Tesla, such as new rules around driverless cars.
Forecasts for Tesla Shares
Outlooks for Tesla’s stock remain split. Some analysts, including Dan Ives of Wedbush Securities, claim Tesla is now in its “most innovative period.” Ives expects advances in self-driving and robotics, like the Optimus robot, could boost Tesla’s market value to $25 trillion, with shares reaching $800 in the coming months. Recent approvals in Nevada for autonomous vehicle tests have supplied extra momentum.
Negative views also persist. The Motley Fool points out that Tesla’s high price-to-earnings ratio of 128.6, along with weaker sales, could trigger a share price drop of 50 percent or more over the next year.
While global electric car sales rose 7 percent in 2024, Tesla’s own deliveries fell by 1.1 percent. Competition from BYD, GM, and Toyota is eating into its market share. Scrapping the highly anticipated $25,000 “Model 2” and relying on premium car sales until 2026 adds to concerns, especially with the threat of escalating trade friction and ongoing political controversies.
Morgan Stanley takes a more even-handed approach and says Tesla stock could soar to $800 or sink to $200, depending on whether Musk delivers on his promises around AI and robotics. The general mood is that Tesla’s next steps depend on Musk’s focus, new tech breakthroughs, and the company’s ability to thrive in a politically divided market. Tesla’s stock reaching a seven-month high reflects hope, but risks and challenges remain clear.
In short, Tesla’s rapid recovery shows investors believe in the company’s potential under Musk’s renewed direction, although troubles with brand perception, politics, and mounting competition are far from solved. Any changes in Musk’s plans or the wider car market could keep Tesla’s share price swinging in the months ahead.
