Tesla’s CEO, Elon Musk, recently conducted an all-hands meeting that appeared to reassure both employees and investors, as noted by Wedbush analyst Dan Ives. Despite a downturn of 30% since the beginning of the year, Tesla’s stock saw a rebound on Monday, attributed to Musk’s demonstrated commitment to the company.
Although Tesla’s stock has experienced a significant decline of over 30% so far this year, the situation improved as Musk redirected his focus towards addressing the challenges of the electric vehicle manufacturer. The company’s stock rose by 12% on Monday, closing at $278.39, marking its strongest performance since the presidential election in November. By Tuesday afternoon, Tesla’s stock value had increased by 2.8%, reaching $286.
The surge in stock prices followed an unusual all-hands meeting led by Musk with Tesla employees last week. During this meeting, he advised employees against selling their shares and assured them of future positive developments.
Musk expressed optimism to the employees, stating, “What I’m here to tell you is that the future is incredibly bright and exciting, and we’re going to do things that no one I think has even dreamed of.”
With Musk firmly steering the company, Dan Ives from Wedbush noted a shift in investor sentiment regarding Tesla. Ives commented to Fortune, highlighting that Musk’s leadership at the all-hands meeting sent a necessary positive signal to both employees and investors. He asserted that Tesla’s stock had been greatly undervalued and is now seeing a recovery as Musk focuses on balancing his responsibilities with DOGE and Tesla.
After the meeting, which was live-streamed, analysts from Wedbush, led by Ives, commended Musk’s approach. They anticipated that Musk might reduce his involvement with the Department of Government Efficiency (DOGE) to focus more on Tesla in the forthcoming months.
In his role with DOGE, Musk has overseen extensive layoffs and budget reductions aimed at optimizing the federal budget. However, the White House indicated in February that Musk was neither in control of cost-cutting at the agency nor employed by it. Musk admitted in a recent interview to balancing both his business ventures and governmental roles with significant difficulty.
Last week, Ives urged Musk to refocus on Tesla, while long-time Tesla investor Ross Gerber called for Musk to either intensify his involvement or facilitate the appointment of an alternative CEO to lead the company.
Besides its declining stock, Tesla is also dealing with mounting competition from China’s BYD, which recently surpassed Tesla with annual sales reaching $107 billion, compared to Tesla’s $97.7 billion annual revenue.
Musk’s political activities have also sparked increased protests and incidents of vandalism against Tesla vehicles and showrooms. President Donald Trump labeled those vandalizing Tesla properties as “terrorists,” and the FBI has established a task force to probe these recent acts of vandalism.
Although Ives had previously warned about potential brand damage due to Musk’s political engagements, he noted a burgeoning support for Musk notwithstanding those criticisms.
“There is still a brand crisis tornado in motion, but we are seeing many flood Tesla dealerships rallying behind Musk with these protests building,” Ives remarked to Fortune.
This article originally appeared on Fortune.com.
