From Slump to Surge: How Trump’s Tesla Buy Boosted the Stock!
Tesla’s stock has been on a rollercoaster ride lately, and Tuesday was no different. After weeks of declines, Tesla shares surged 5%, fueled by an unexpected endorsement from former President Donald Trump and a major vote of confidence from Wall Street analysts.
This rally comes at a critical moment for the electric vehicle giant, which has been struggling with declining sales, growing competition, and concerns over Elon Musk’s divided attention. But with Trump publicly backing Musk and investment firm Wedbush setting a bold new price target of $550, Tesla might be on its way to a comeback.
Trump Says He’s Buying a Tesla—And Investors Take Notice
In a surprising move, Donald Trump took to his social media platform, Truth Social, to publicly declare his support for Musk and Tesla.
“I’m going to buy a brand-new Tesla tomorrow morning as a show of confidence and support for Elon Musk, a truly great American,” Trump wrote.
The announcement made waves across financial markets, as Trump’s endorsement signaled potential political backing for Musk and his businesses.
But Trump didn’t stop there. The next day, Musk was seen at the White House, where Trump took a test drive in a red Tesla Model S on the South Lawn. The moment was widely shared online, showing a newfound alliance between two of the most influential (and controversial) figures in business and politics.
While political endorsements don’t always have a lasting impact on stock prices, this one caught the attention of investors. It’s no secret that Tesla has faced regulatory challenges in the past, and having support from a political heavyweight like Trump could make a difference.
Wall Street Analyst Sets a $550 Target for Tesla
While Trump’s backing created a media buzz, a more substantial boost for Tesla came from Wall Street. Dan Ives, a well-known analyst at Wedbush Securities, reaffirmed his bullish stance on the stock, maintaining an “Outperform” rating and setting a price target of $550 per share.
Ives pointed to Tesla’s push into artificial intelligence (AI) and self-driving technology as key reasons for his optimism.
“Tesla is far more than just an electric vehicle company—it’s a tech powerhouse with game-changing AI and robotics innovations,” Ives said in his latest report.
According to Wedbush, Tesla’s Full Self-Driving (FSD) software and advancements in AI could open up new revenue streams, making the company worth much more than it is today. Ives’ report was enough to reignite enthusiasm among Tesla investors, helping the stock climb after weeks of losses.
Tesla’s Struggles: A Rough Start to 2025
Before this recent rebound, Tesla was having a tough time. Just a day earlier, the stock had plummeted 15.4%, wiping out billions in market value.
So, what was dragging Tesla down?
- Slower Sales – Tesla’s vehicle deliveries have fallen below expectations, causing concerns that demand for its cars might be slipping. UBS analyst Joseph Spak even cut his Tesla delivery forecast to 1.7 million vehicles for the year.
- Musk’s Many Distractions – Investors have been uneasy about Musk juggling multiple companies, including SpaceX, Neuralink, and X (formerly Twitter). Many worry that Tesla isn’t getting enough of his focus.
- Tougher Competition – Automakers like Ford, GM, and new EV startups are catching up, forcing Tesla to fight harder for market share.
Despite these challenges, Tuesday’s surge suggests that Tesla still has plenty of believers—especially on Wall Street.
Can Tesla Turn This Rally Into a Real Comeback?
While the 5% stock jump is a positive sign, analysts are divided on whether Tesla’s rebound will last. Some remain skeptical, arguing that the company needs to fix its declining sales and prove it can maintain its dominance in an increasingly crowded EV market.
Others, like Ives, believe Tesla is still in the early stages of unlocking its full potential. If Tesla can successfully expand its AI and self-driving business, it could become more than just a car company—it could become a tech giant.
At the same time, political dynamics could also play a role. Trump’s endorsement of Tesla may seem like a short-term PR win, but if it signals broader political support for Musk’s businesses, it could have longer-term implications.
Final Thoughts: Tesla’s Wild Ride Continues
The recent spike in Tesla’s stock price is a perfect illustration of how erratic the market can be. One day the firm is losing a lot of money, and the following day shares are rising due to an optimistic analyst report and a presidential endorsement.
Can Tesla convert this momentum into actual growth? That is the key question at this point.
All eyes will be on Tesla’s next actions given Wedbush’s $550 price estimate and the newfound optimism of investors. It remains to be seen if this marks the beginning of a more significant recovery or merely another setback in Tesla’s turbulent history.
