Tesla CEO Elon Musk looks on as US President Donald Trump speaks to the press as they stand next to a Tesla vehicle on the South Portico of the White House on March 11, 2025 in Washington, DC.
Mandel Ngan | AFP | Getty Images
Tesla shares rose for a second straight day in early trading Wednesday after the stock recorded its worst day since 2020 earlier in the week.
Shares were last up nearly 6%, building on a 3.8% gain from Tuesday.
The electric vehicle stock plunged 15.4% on Monday for its worst session since September 2020 as investors sold popular technology shares and markets tumbled on rising recession fears and tariff uncertainty. The move pushed the Nasdaq to its worst day since 2022 and erased $750 billion in market value among the tech megacaps.
Tesla has tumbled in recent weeks, shedding more than a third in market value since President Donald Trump took office. Shares rallied in the post-election Trump trade on bets that CEO Elon Musk’s close ties to the president would benefit the company.
Tariff concerns have added fuel to that fire as a potential trade war threatens two key supplier markets. That pushed the company to its longest weekly losing streak in its 15-year public market history.
Since Trump’s inauguration, Musk has become a key face of the new White House administration and close advisor of the president as he looks to reduce government spending, leading the Department of Government Efficiency.
Trump said Tuesday he plans to buy a Tesla in support of Musk as Tesla locations around the country saw protests and demonstrations.
Tesla has also dealt with brand erosion stemming from incendiary political rhetoric on his social media platform X. The platform suffered several outages on Monday. Meanwhile, Musk’s aerospace and defense company SpaceX is currently investigating two test flight explosions.
Tesla faces a divided Wall Street, as bears point to rising EV competition, declining new vehicle deliveries and the impact of tariffs on the company’s near-term business. Bulls still have faith in Musk and his promise to unveil an affordable new model EV and start a driverless ridehailing service later this year.
A recent investor survey found that 85% of respondents believed politics are hurting the company.
— CNBC’s Lora Kolodny contributed reporting.
