Tesla Chief Executive Elon Musk told employees to hold on to their stock and stay optimistic amid a series of blows to his company’s reputation that have sent shares plunging.
Since Musk began his prominent role in the Trump administration in January, Tesla stock has taken a hit as protests against the electric vehicle brand have erupted across the country.
Tesla shares rose 5% Friday to close at $248.71 but have dropped 34% this year.
Tesla vehicles, dealerships and charging stations have become targets for vandalism as distaste grows for Musk and his Department of Government Efficiency, or DOGE. In a show of support, President Trump purchased a Tesla on the White House lawn earlier this month.
Trump’s public purchase of a Tesla gave the stock a small boost, but it has fallen 26% over the last month.
While juggling initiatives at the White House, Musk has continued to voice ambitious goals for his electric vehicles.
In an all-hands meeting broadcast Thursday night on X, Musk’s social media network formerly known as Twitter, the chief executive touted Tesla’s accomplishments and urged employees to “hang on to your stock.”
“There are times when there are rocky moments … a little bit of stormy weather,” Musk said at the meeting, which had an in-person audience of several employees clad in Tesla branded T-shirts.
“I’m here to tell you that the future is incredibly bright and exciting,” he said. “We’re going to do things that no one has even dreamed of.”
He has long promised to deliver fully autonomous driving technology and a fleet of driverless robotaxis, but Tesla’s current technology known as Full Self-Driving cannot function without an alert human behind the wheel.
The company has taken early steps toward launching a robotaxi service in California, though experts say the technology is far from ready.
Musk also cited plans Thursday to produce the Cybercab and his humanoid robot dubbed Optimus in Austin, Texas.
He lauded the Model Y’s best-selling status at the meeting and promoted the Cybertruck, his electric pickup, despite actions by regulators earlier this week to recall nearly all Cybertrucks on the road. The National Highway Traffic Safety Administration’s recall covers more than 46,000 vehicles and warns that an exterior panel can detach while driving, increasing the risk of a crash.
As Tesla’s reputation stumbles, many owners have moved to sell their cars or otherwise denounce Musk by sticking a critical bumper sticker on their vehicle. A combination of increased supply and decreased demand has pushed down the resale value of several Tesla models, said Karl Brauer, an analyst at Iseecars.com.
In February, Tesla topped the list of brands that lost the most resale value year over year, according to data provided by Brauer. The price of a used Tesla Model S and Model Y each dropped by about 16% last month from a year earlier and the price of a used Model 3 dropped 13.5% over the same period.
“The question is, is Musk gaining more people than he’s losing?” Brauer asked.
The increase in share price Friday could reflect renewed confidence after the all-hands meeting, during which Musk listed other Tesla achievements such as producing more than 7 million vehicles globally.
Going forward, Musk will need to carefully balance his controversial role in the federal government with his leadership role at Tesla, said Dan Ives, an analyst at Wedbush Securities who has a buy rating on Tesla stock.
“His behavior and actions have definitely alienated a group of consumers and created malcontent,” Ives said. “When you’re selling a mass market vehicle and you take a political affiliation like this, there’s a downside to it.”
A Tesla representative did not immediately respond to a request for comment.
