Will The Return of Elon Drive Tesla Stock Higher?

Group 1 - Tesla stock (NASDAQ:TSLA) has increased by nearly 20% over the last month, driven by a general market upturn and CEO Elon Musk's renewed focus on the company after resigning from a government advisory position [2][3] - Musk's departure from the Department of Government Efficiency allows him to concentrate on Tesla's challenges, including declining deliveries and profitability, while also pursuing long-term projects like humanoid robots [3] - Tesla is set to launch its robotaxi service in Austin, Texas, which could tap into a massive $750 billion autonomous ride-hailing market, giving Tesla a competitive edge due to its control over manufacturing, software, and charging infrastructure [4] Group 2 - Tesla's stock has shown significant volatility over the past four years, with annual returns of 50% in 2021, -65% in 2022, 102% in 2023, and 63% in 2024, contrasting with the more stable performance of the Trefis High Quality Portfolio [5][6] - The automotive sector faces challenges from increasing competition in the EV market, particularly from Chinese companies, alongside issues like declining brand reputation and resale values [6] - Tesla's current valuation is high, trading at 180x consensus 2025 earnings, indicating potential difficulties in adjusting to this valuation level in the near future [6]