Billionaire Joe Gebbia, co-founder of Airbnb Inc. ABNB, has made a significant investment by purchasing over 4,000 shares of Tesla Inc. TSLA.

Details of the Purchase

According to a recent SEC filing, Gebbia acquired 4,000 shares at a price of $256.308 each. This transaction took place as he serves on Tesla’s board of directors as an independent member since 2022.

Strategic Intentions

Additionally, Gebbia has joined Elon Musk‘s Department of Government Efficiency (DOGE), contributing to efforts aimed at modernizing the government’s paper-based retirement process.

Market Implications

This news arrives as Tesla prepares for its anticipated robotaxi launch in June. During the Q1 earnings call, Musk indicated that the launch could feature 10 to 20 Model Ys available from the first day of operations.

Moreover, Gebbia expressed a desire to reduce his commitments with DOGE to focus more on his role at Tesla. This shift has led analysts, such as Dan Ives, to set optimistic price targets for Tesla’s stock, which has responded positively in recent trading sessions.

Tesla’s Current Challenges

Despite this optimistic investment environment, Tesla faces several hurdles. The company has reported declining sales in both the U.S. and European markets. Notably, there was a dramatic 71% year-over-year profit drop for Q1 2025, reflecting significant operational challenges. Furthermore, Tesla owners are currently experiencing falling used car values coupled with rising insurance costs.

Performance Metrics

Despite facing challenges, Tesla scores well on momentum and quality metrics, along with a satisfactory growth score. However, it does not perform as well in terms of value, indicating mixed market conditions.