Tesla stock saw a surge of more than 7 percent, and it could rise further

Tesla stock (NASDAQ: TSLA) surged by more than 7% on Wednesday, March 12, 2025, offsetting some of the losses incurred earlier in the week, though the company has had a less-than-ideal start to 2025, with its stock down 34 percent year-to-date, erasing all gains from President Donald Trump’s election victory.

This decline is primarily attributed to reduced demand due to backlash against CEO Elon Musk’s support for Trump and his role in the Department of Government Efficiency (DOGE), coupled with investor concerns over Musk’s inability to balance his time between Tesla and DOGE, as Wedbush analyst Dan Ives noted that Musk has been absent from Tesla factories for the past two months, fueling a negative perception among shareholders.

Wednesday’s uptick was driven by Trump’s support, as he purchased a Model S sedan at the White House and pledged to pay by check, sparking increased backing for Tesla among high-profile Republicans like Sean Hannity.

However, Musk’s DOGE initiative has entangled Tesla in a political controversy, and while the Trump administration’s potential regulatory relief for autonomous vehicles could be a positive factor, failure by Musk to focus on Tesla, combined with growing boycotts in Europe and the U.S., could further damage the brand.