Tesla Gains as Musk Begins Public Apology Tour Ahead of Robotaxi Launch

Tesla shares traded higher midday Wednesday after CEO Elon Musk publicly apologized for recent comments directed at former President Donald Trump, a move analysts say could ease political overhangs ahead of the company’s first robotaxi rollout later this month.

At approximately 10:45 a.m. ET, Tesla (TSLA) shares were up $6.18, or 1.90%, at $332.27, based on market data displayed in a screenshot dated June 11, 2025.

The apology, posted by Musk on X, read: “I regret some of my posts about President Trump last week. They went too far,” according to a report by Wedbush Securities dated June 11. The firm described it as a “positive” step for Tesla’s strategic outlook. “We believe this is an important step to the two becoming friends again and allies on a number of topics,” wrote analysts Daniel Ives, Sam Brandeis, and Steven Wahrhaftig.

The reconciliation comes at a critical time for Tesla, which is preparing to launch its long-awaited robotaxi service in Austin, Texas, on June 22. Initially planned for June 12, the revised date was announced by Musk on X earlier this morning, the Wedbush report said.

Wedbush maintains an Outperform rating and a $500 price target on Tesla, citing the Robotaxi rollout as central to the company's pivot toward AI and autonomous mobility. “We believe the vast majority of valuation upside looking ahead for Tesla is centered around the success of its autonomous vision taking hold with this key launch in Austin ahead,” the analysts wrote.

Tesla plans to deploy a small fleet of Model Y SUVs in Austin, operating under remote supervision. The vehicles will run on Full Self-Driving (FSD) version 13 software. However, crowdsourced data suggests the system averages only 500 miles between critical disengagements, compared to the National Highway Traffic Safety Administration's (NHTSA) human driver benchmark of 700,000 miles.

Regulatory scrutiny continues. The NHTSA is actively investigating Tesla’s FSD system following incidents involving its “Actually Smart Summon” feature and nighttime collisions. These investigations could delay broader rollout plans beyond Texas, though Wedbush believes a Trump administration would likely fast-track federal approvals: “We fully expect under a Trump White House these key initiatives will get fast tracked... as the federal regulatory spiderweb... clears significantly,” the analysts wrote.

Despite being a late entrant compared to rivals like Waymo—already logging over 500,000 paid rides per week—Tesla’s installed base of about 3 million autonomy-ready vehicles provides a substantial testing advantage.

Wedbush estimates Tesla’s AI and autonomous opportunity to be worth “at least $1 trillion alone,” and sees the company’s market cap potentially reaching $2 trillion by the end of 2026 if execution aligns with its roadmap.

WATCH: Could Oracle's AI push and Project Stargate send its earnings through the roof?