Categories: Politics

Tesla stock’s bumpy road through 2024 erased by Musk and Trump’s bromance

Tesla’s (TSLA) journey through 2024 began with turbulence, as recalls, CEO Elon Musk’s controversies, and rising competition led to a steep 24% decline in its stock by February. The automaker faced mass layoffs, and the stock was one of the worst performers in the S&P 500 for the first half of the year.

April surprise: Musk’s Beijing visit bolsters Tesla’s prospects

Tesla shares began rebounding in April when Musk made a surprise trip to Beijing, delaying a meeting with Indian Prime Minister Narendra Modi. Musk’s discussions with Chinese Premier Li Qiang set the stage for Tesla to test its Full Self-Driving (FSD) technology on Chinese state roads. By June, Shanghai approved limited testing of FSD, signaling significant progress for Tesla in the world’s largest EV market.

Shareholders double down on Musk

In June, Tesla investors overwhelmingly approved Musk’s 2018 compensation package, allowing him to buy 304 million shares at a set price. The vote signaled confidence in Musk’s leadership, despite a court challenge. Although Delaware Chancellor Kathaleen McCormick rejected the package in December, the decision energized shareholder sentiment.

Trump election victory fuels Tesla rally

Tesla stock faced another dip after weak robotaxi updates and lackluster Q2 results, but Donald Trump’s November election victory reignited enthusiasm. Musk’s close relationship with Trump became evident, as he frequently visited Mar-a-Lago and joined high-profile meetings with CEOs and world leaders.

Anticipated policy changes under Trump benefit Tesla

Trump’s team reportedly discussed rolling back regulations on crash reporting and autonomous vehicles, which could benefit Tesla’s operations. While the president-elect may cut EV tax credits, a move endorsed by Musk, investors viewed Tesla’s alignment with the new administration as a boon for the company’s future.

Tesla stock rebounds to significant highs

GRUENHEIDE, GERMANY – MARCH 22: (Alternate crop of #1239417601) Tesla CEO Elon Musk contemplates during the official opening of the new Tesla electric car manufacturing plant on March 22, 2022 near Gruenheide, Germany. The new plant, officially called the Gigafactory Berlin-Brandenburg, is producing the Model Y as well as electric car batteries. (Photo by Christian Marquardt – Pool/Getty Images)

Investor optimism over the Trump-Musk alliance pushed Tesla stock to new highs, peaking at around $470 per share in late 2024. Though it has since settled to approximately $420 per share, the stock has recovered from its early-year slump, now up over 70% for the year.

A strong finish to a turbulent year

From a rocky start to newfound momentum under a Musk-Trump partnership, Tesla ends 2024 on a high note. With strategic moves in China, strong shareholder backing, and potential regulatory benefits, the automaker is positioned for a promising trajectory in the years ahead.

Herbert Bauernebel

Herbert Bauernebel has been reporting from New York since 1999 and currently works for Bild.de, OE24 TV, and US Live. He also runs the news portal AmerikaReport.de. Bauernebel has covered nearly all major US events of the past quarter-century, including 9/11, Hurricane Katrina, Barack Obama’s election, Donald Trump’s surprise victory, the pandemic, last year’s election showdown, as well as natural disasters such as hurricanes and oil spills. He has also reported firsthand on international events, including the Asian tsunami, the Haiti earthquake, and the Fukushima disaster. He lives in Brooklyn with his family and holds degrees in communication and political science from the University of Vienna. Bauernebel is the author of a book about his experiences on 9/11, And the Air Was Full of Ash: 9/11 – The Day That Changed My Life.

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