The S&P 500 rose 5% and the Nasdaq Composite increased 8% in May 2025, driven by new trade deals in response to President Trump’s tariff policies, with Tesla surging 23% during the same period. Tesla faces challenges as its core electric vehicle segment slows due to increasing competition, and its stock price has not aligned closely with its business performance.
Elon Musk recently stepped away from his role in the Department of Government Efficiency to refocus on Tesla, which is set to launch its autonomous driving fleet, Robotaxi, on June 12 in Austin, Texas. Musk’s attention shift has sparked renewed investor interest, with Cathie Wood of Ark Invest maintaining a $2,600 price target and Dan Ives of Wedbush Securities raising his to $500 per share. Despite this optimism, concerns remain due to a high forward P/E ratio of 181 and recent revenue declines.
