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During a recent press event at the White House, US President Donald Trump and Tesla’s CEO Elon Musk, accompanied by Musk’s son X Æ A-Xii, gathered to speak with the media on March 11, 2025.
Following these developments, Tesla’s stock experienced a 5% increase. This rise was attributed to Musk’s indication that he plans to dedicate more time to Tesla, coupled with increased optimism surrounding tariffs following the White House’s signals.
Initially, Tesla’s shares remained flat in after-hours trading; however, they surged amidst positive sentiments regarding tariff revisions hinted by President Trump. He stated that tariffs on China would not reach the previously discussed 145% and reassured investors that he had “no intention” of dismissing Federal Reserve Chair Jerome Powell before the upcoming Tesla earnings call.
This showed a shift from the president’s earlier stance, where he placed considerable pressure on Powell and did not rule out the possibility of his removal prior to Powell’s term ending.
Tesla’s performance in the first quarter of the year, however, fell short of expectations, showing a 20% decline in automotive revenue compared to the previous year and a staggering 71% drop in net income. The company announced it would reevaluate its guidance for 2025 in its second-quarter update.
In terms of financial results, Tesla reported adjusted earnings of 27 cents per share on revenues of $19.34 billion, failing to meet analysts’ forecasts of 39 cents per share on revenues of $21.11 billion.
During the earnings call, Musk declared his intention to reduce his involvement with the Department of Government Efficiency, indicating he would focus more on Tesla’s future.
This shift in share price follows a significant downturn for Tesla, which has seen a decline of about 40% since the beginning of 2025. Factors contributing to this trend include heightened trade war anxieties and increased market volatility, leading to its worst quarterly performance since 2022 in the first quarter.
Piper Sandler characterized Tesla’s results as the “best result that TSLA bulls could’ve reasonably hoped for,” noting that the management’s remarks helped to alleviate some investor concerns, even if uncertainties lingered.
Goldman Sachs analyst Mark Delaney expressed a more optimistic long-term view, suggesting that increased software revenue from Tesla’s full self-driving capabilities could mitigate some short to medium-term challenges. Still, the firm opted to maintain a neutral rating and revised its price target downward.
Conversely, certain Wall Street analysts remained skeptical. UBS and Wells Fargo maintained their sell and underweight ratings, with Wells Fargo analyst Colin Langan adjusting the firm’s price target from $130 to $120. He pointed out that while there might be a temporary boost in sentiment leading up to a June launch of a robo-taxi, it could ultimately turn into a sell-the-news scenario for some investors, especially given the uncertainties surrounding the anticipated low-cost vehicle launch.
WATCH: Tesla jumps after Q1 results
Source
www.cnbc.com