Time to Ride Tesla ETFs on Recent Stock Rebound & Robotaxi Launch?

Core Viewpoint - Tesla's stock has experienced volatility due to the conflict between Elon Musk and Donald Trump, impacting investor sentiment and leading to a recent recovery following Musk's public apology [1][4]. Group 1: Stock Performance - Tesla shares lost 7% over the past month but rebounded with a 13.9% gain last week after Musk's apology [1]. - The average brokerage recommendation for Tesla is currently 2.77, indicating a slight decline from 2.68 a month ago [9]. - Among 42 brokerage recommendations, 14 are classified as Strong Buy, accounting for 33.33% of all recommendations, while 2 are classified as Buy [10]. Group 2: Government Relations - The conflict escalated as Trump suggested revoking federal subsidies and contracts benefiting Musk's companies, including Tesla [2]. - Musk's apology aimed to mend ties with the U.S. government, which had previously intensified regulatory uncertainty [4]. - The reconciliation between Musk and Trump is viewed as "mutually necessary" for Tesla's growth trajectory, especially with the upcoming launch of the Cybercab robotaxi service [6]. Group 3: Market and Regulatory Concerns - Concerns have arisen regarding zero-emission vehicle credits, which are a significant revenue source for Tesla and may face volatility depending on evolving environmental policies [8]. - Musk's focus on artificial intelligence and autonomous driving initiatives is seen as a potential savior for Tesla amid current challenges [7]. Group 4: ETF Performance - Tesla-heavy ETFs have shown mixed performance, with TESL gaining 9.7% while NITE and XLY experienced losses of 2.1% and 0.1%, respectively [12]. - TSLW gained 16.4%, indicating a strong interest in income and growth potential among investors [12].