Tesla Inc. (NASDAQ:TSLA) stock climbed 3.70% during the pre-market trading session on Wednesday as it attempted to rebound from the gloom surrounding the past trading sessions.
What Happened: In Tuesday’s interview on Fox News’s Sean Hannity, CEO Elon Musk responded to the protests, expressing surprise at the “level of hatred and violence from the [political] left.”
He defended Tesla as a “peaceful company” that has “never done anything awful.” Musk also touched upon the Department of Government Efficiency (DOGE), which he oversees.
He underscored the high national debt, pointing out that interest payments surpass the entire military budget.
In another positive development, Tesla secured its first permit in California, a significant step towards launching a robotaxi service, enabling the company to operate a fleet of vehicles for scheduled trips.
However, the permit does not allow Tesla to offer autonomous rides or run a public ride-hailing service. Musk has turned his attention to robotaxis as sales slow, pledging to launch driverless services in California and Texas this year.
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Why It Matters: Tesla investors are going through a period of uncertainty amid declining share prices and ongoing protests against the company.
Rising competition from Chinese EV manufacturer BYD (OTC:BYDDF) has also added to the concerns. All these factors have triggered a substantial sell-off of shares. As of Wednesday, Tesla’s stock had dipped about 47% since the Jan. 20 inauguration of President Donald Trump.
According to RBC Capital analyst Tom Narayan, “Much of the attention around Tesla has centered on its recent delivery performance in Jan and Feb in Europe and China.”
He believes that concerns about demand are likely exaggerated, as Europe and China account for only a small share of Tesla’s total vehicle sales. However, the analyst is concerned as Tesla used car prices are declining at three times the pace of the overall used car market.
On Tuesday, Tesla stock declined 5.35% to close at $225.31. Over the past 12 months, the stock gained over 31%, as per Benzinga Pro.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
