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Tesla (TSLA) stock has recovered slightly after wiping out all of its post-election gains and losing 15% in Monday's sell-off. The stock is still down over 50% since its December peak. Tesla's struggles have been linked to Elon Musk's leadership in the Trump administration's cost-cutting efforts.
Yahoo Finance hosts Josh Lipton and Julie Hyman discuss the impacts of Musk's involvement with President Trump on Tesla's brand and sales.
To watch more expert insights and analysis on the latest market action, check out more Market Domination here.
This post was written by Josh Lynch
Let's get a quick check on another beaten down magnificent seven stock. And that would be Tesla. That stock is jumping late in the session here. Now, trading near the highs of the day. Tesla CEO Elon Musk appearing outside the White House with President Trump, as the president took a look at some Tesla vehicles. And he says he's planning to buy one. The president's saying he hopes that if he buys a Tesla it will help boost sales for the brand, which have come, we know under pressure since Musk started leading the administration's cost cutting efforts, Julie.
Yeah. The stock may be bouncing a little bit today. But as we know, as of yesterday, it had wiped out all of its gains since the election. Since the stock reached a record high back on December 17th, it has fallen by more than 50%. So, little, I mean, you can see on that chart, the, the rebound today is just a blip there because of some of the concern. So, you know, will, will Trump buying a Tesla help Tesla sales?
Dan Ives over at Redbush, Bull of Bulls.
What? Is he bullish on Tesla?
Very bullish. And here was his note today, word of caution from Mr. Ives. He says, "We believe this is a moment of truth for Musk and Tesla. If Musk continues to head down the dodge path, 110%, and showing no attention to Tesla during this turbulent time, then brand damage would become more pervasive." But it sounds like Musk is saying here, today he will stay as a Trump advisor. He's saying, as long as he's useful.
Right. It's interesting because we talked to folks like Ross Gerber who says Tesla's actually better off without Musk running it day-to-day. Um, and Craig Irwin has said something similar that, you know, because of the leadership that's in place at Tesla can run itself. But then there is that brand damage, um, piece of it.
We'll continue to watch.
We will.
