Tesla's Stock Surges 23% as Musk Softens Trump Criticism

Elon Musk, the CEO of Tesla, has softened his stance towards former U.S. President Donald Trump, acknowledging that his previous criticisms were "somewhat excessive." This shift in attitude comes as Tesla's stock price has been on a three-day upward trajectory, rising 1.7% on Wednesday alone, and recovering 23% from its low point on June 5.

Analysts at Wedbush Securities have noted that this change in Musk's tone is crucial for Tesla's plans to launch its autonomous ride-hailing service in Austin on June 22, a pivotal moment in the acceleration of the AI revolution.

Wedbush analyst Dan Ives highlighted the strategic importance of Musk's conciliatory approach, stating, "Musk needs Trump, and Trump needs Musk." This relationship is essential for Tesla's ambitious plans, particularly in the realm of autonomous driving. Ives emphasized that the success of Tesla's autonomous driving launch in Austin is critical for the company's future valuation, which could potentially reach $2 trillion.

Ives further elaborated in his report to investors, "We believe that a significant portion of Tesla's future valuation potential hinges on the success of its autonomous driving launch in Austin." Maintaining a positive relationship with the Trump administration is crucial for advancing federal frameworks for autonomous driving, a key factor in Tesla's journey towards a $2 trillion valuation.

Ives also pointed out that the widespread adoption of Tesla's Full Self-Driving (FSD) technology among its existing users, coupled with the accelerated rollout of the Cybercab in the U.S., marks the beginning of Tesla's path to a $2 trillion valuation. This, he believes, is the true "golden goose" for the company.