Tesla Stock Soars 20%, But Internal Struggles Persist

Tesla stock has closed May with a remarkable gain of over 20%, putting it on track for its strongest monthly close since early January, according to CNBC. This rally comes as the company faces serious challenges in both Europe and China, where sales have plummeted, and Elon Musk’s involvement in political matters is under increasing scrutiny. Despite the stock surge, Tesla’s car sales are declining across key markets like Europe and China. 20% gain aside, Tesla has seen a significant slowdown in European sales with a 50% drop year-over-year and an even more notable decline in China where sales dropped 25% over the first eight weeks of this quarter. Meanwhile, competitors like Waymo are pushing ahead, gaining momentum with their driverless rides program, which crossed 10 million paid trips in the US. Tesla’s own autonomous vehicle program remains on hold. Adding to these challenges is Elon Musk’s continuing involvement in political activities and his close relationship with former President Donald Trump, leading to public protests against his political endorsements. These controversies are now pushing for change as a group of pension fund leaders have demanded Elon work 40 hours per week on Tesla’s business. The pressure seems to be mounting. Tesla CEO Elon Musk promises to scale back his involvement with the Department of Government Efficiency and its associated token, DOGE, though plans remain for continued consultation with President Trump. Despite these struggles, Elon has announced a limited test fleet of Model Y vehicles equipped with Tesla’s latest driverless technology. The company is taking steps towards addressing public concerns regarding sales trends and human rights practices.