{"id":8004,"date":"2025-05-30T16:12:22","date_gmt":"2025-05-30T16:12:22","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/30\/why-tesla-stock-is-soaring-even-as-its-core-business-slumps\/"},"modified":"2025-05-30T16:12:22","modified_gmt":"2025-05-30T16:12:22","slug":"why-tesla-stock-is-soaring-even-as-its-core-business-slumps","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/05\/30\/why-tesla-stock-is-soaring-even-as-its-core-business-slumps\/","title":{"rendered":"Why Tesla Stock Is Soaring Even As Its Core Business Slumps"},"content":{"rendered":"
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Elon Musk recently promised to spend more time running Tesla. Chip Somodevilla\/Getty Images<\/span><\/figcaption><\/figure>\n

Tesla<\/a>\u2019s electric vehicle business is slowing fast. In the first three months of 2025, its revenue fell 9 percent and profit plummeted 71 percent<\/a> from a year ago. In April, Tesla\u2019s EV sales in Europe fell 49 percent year-over-year<\/a>.\u00a0Despite these alarming numbers, Tesla\u2019s stock has surged\u2014up 23 percent in the past month and nearly 50 percent since its dismal earnings report in April.<\/p>\n

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So what\u2019s driving the rally? Much of it comes down to Elon Musk<\/a>. On May 28, the Tesla CEO announced on X that his role as a special government employee is ending. The market took it as a signal that Musk is returning full-time to Tesla. Shares jumped on the news, although they had already been climbing amid earlier expectations of Musk\u2019s White House exit.<\/p>\n

Wedbush analyst Dan Ives<\/a>, known for his often bullish stance on Tesla, lauded Musk\u2019s public announcement as \u201cmusic to the ears of Tesla shareholders.\u201d<\/a><\/p>\n

Still, Tesla\u2019s stock rise isn\u2019t as outsized as it looks at first glance. The S&P 500 is up 6.2 percent in the past month. The \u201cMagnificent Seven\u201d tech stocks have returned 14 percent, buoyed by renewed optimism around global trade following political volatility and tariff threats from President Trump\u2019s \u201cLiberation Day.\u201d In that broader context, Tesla\u2019s 23 percent gain\u2014while notable\u2014isn\u2019t outrageous.<\/p>\n

But the disconnect between Tesla\u2019s stock and its business fundamentals remains striking. Tesla\u2019s reputation in Europe has taken a hit, in part due to Musk\u2019s political alignment, including his controversial support for Germany\u2019s far-right AfD party. While consumers appear to be turning away, investors are betting that Musk\u2019s renewed focus and bold promises will spark a turnaround.<\/p>\n

One of those promises: robotaxis. Musk says Tesla will unveil its fully autonomous robotaxi on June 12 in Austin, Texas. It\u2019s a claim he\u2019s made before\u2014many times. Still, the announcement rattled competitors. Uber\u2019s stock dropped on the news.<\/p>\n

Behind the scenes, pressure on Musk has been growing. The Wall Street Journal recently reported that Tesla\u2019s board had quietly begun a CEO search.<\/a> (Tesla denied the report). This week, Tesla chair Robyn Denholm<\/a> received a letter signed by a coalition of Tesla\u2019s institutional shareholders calling on Musk to commit to working at least 40 hours per week\u00a0at Tesla.<\/p>\n

\u201cThe current crisis at Tesla puts into sharp focus the long-term problems at the company stemming from the CEO\u2019s absence,\u201d the letter said. \u201cGiven Musk\u2019s leadership roles at four private companies and his foundation, the Board must ensure that Tesla is not treated as just one among many competing obligations.\u201d<\/p>\n

Aside from Tesla, Musk partially owns and runs at least five other companies, including SpaceX, X, The Boring Company, Neuralink and xAI.<\/p>\n<\/div>\n