Stock Price of Tesla Surges Following Elon Musk's Encouragement: "Hang On" to Plunging Shares
Headline: Elon Musk Rallies Tesla Employees Amid Stock Turmoil: "Hang On To Your Stock!"
Intro:
In the face of mounting worries regarding his Tesla CEO role and the White House, Elon Musk, the world's wealthiest individual, gathered Tesla employees for a livestreamed all-hands meeting on a chilly late Thursday. Urging employees to hold onto their Tesla stock through the turbulent three-month stretch, his words sparked a surge in Tesla shares.
Key Details:
Addressing the carmaker's 51% stock plummet from its December peak, Musk insoucianly acknowledged the stormy climate and media hype, likening the situation to "Armageddon." He pointed to the ongoing protests and vehicle vandalism at Tesla showrooms as evidence of the strife but reassured his audience, emphasizing the company's resilience.
Tesla stock saw a 4% jump by mid-afternoon on Friday, though it still struggled with a 2% decline since the previous week, hinting at a ninth consecutive losing week.
Analyst's Take:
Just hours following the all-hands meeting, Wedbush's bullish analyst Dan Ives commended Musk for his show of leadership, asserting that such an appearance was long overdue. Ives believed that Musk's hand-holding was essential at this crucial juncture for both employees and investors alike.
Surprise Defender:
Claiming an overwhelming workload, Musk revealed his commitment to 17 jobs, admitting that he's stretched thin.
Background:
In addition to Tesla, Musk plays significant roles in SpaceX, Neuralink, Boring Company, and X, among other enterprises. His heavy influence on Trump's administration, particularly in slashing civil service jobs and government funding, has sparked controversy and negatively impacted Tesla sales since early 2025. As a result, several Wall Street firms have lowered their price targets for Tesla stock and adjusted their vehicle delivery forecasts for 2025.
Forbes' Evaluation:
With Tesla's stock dive, Musk has suffered a staggering $140 billion loss, placing him as the world's wealthiest individual but marking a significant decline from his December peak. Despite the setback, SpaceX, rather than Tesla, currently accounts for the majority of Musk's wealth, according to Forbes' estimates.
The Final Struggle:
Sales woes for Tesla have been attributed to a dip in brand perception in both the U.S. and the EU, as outlined by Mizuho analysts. Musk's involvement in politics has been criticized as a distraction by some analysts and investors, potentially impacting Tesla's performance and sales resistance. Factors such as earnings disappointments, tariffs, and political backlash continue to pose challenges for the company.
- Elon Musk, during the livestreamed all-hands meeting with Tesla employees, encouraged his employees to hang onto their Tesla stock amidst the stock turmoil he is facing.
- After the livestreamed meeting, Wedbush's analyst Dan Ives expressed approval for Musk's leadership, asserting that Musk's demonstration of support for his company and its employees was necessary at this critical time for the automaker.
- The valuation of Musk's businesses took a significant hit when Tesla's stock saw a 51% plummet from its December peak, resulting in a staggering $140 billion loss for Musk, despite SpaceX currently accounting for the majority of his wealth.
