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Trump effect takes hold of Tesla’s (TSLA) stock price

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Why has Tesla’s stock price increased so much in value over the past couple of months? What effects have a Trump Presidency had on Tesla stock values? And, overall, why have there been so many skeptics who’ve openly voiced concerns about Tesla’s validity as an investment?

Tesla has seen a pattern in which, due to delivery date misses, analysts have critiqued the company’s overall growth potential. They often wonder aloud whether turning monies back into the Tesla business makes sense for investors. Increasing scrutiny of new competitors for a currently small but potentially significant electric vehicle market has complicated the overall Tesla stock valuation picture.

And then there’s CEO Elon Musk, widely known for working 100 hour weeks while he runs both the Tesla automotive company and SpaceX.

Over the past year, a cycle has taken place in which sliding stock prices are followed by strong public sentiment that pushes stocks prices upward. Helpful for the overall Tesla financial health picture have been carefully placed Tesla news events, model improvements, software updates, or new company acquisitions, such as SolarCity.

What’s changed from late 2016 into early 2017 with TSLA?

TSLA stocks are currently receiving very positive reports from the market. Shares have risen nearly 20% since the beginning of the year and up over 40% from the period between November’s low through January, 2017. Just last week, Morgan Stanley’s lead auto analyst, Adam Jonas raised Tesla’s price target from $242 to $305 with associated higher earnings prediction for fiscal year 2018.

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Partially that optimism rises from a view that Tesla can launch its $35,000 Model 3 on schedule. Tesla describes Model 3 targets on its website as production beginning in mid-2017 and delivery estimates for new reservations in mid 2018 or later. Jonas has given the nod to the likelihood that Tesla will be able to create additional business through car-sharing, but also cited a “supportive political environment” as cause for the upgrade.

There’s also Tesla’s short interest, which has jumped 27.8 percent in the past year. Traders have wagered that the Model 3 may not live up to the market’s sky-high expectations.

The Trump effect on TSLA

Possibly the most important reason that TSLA stock has been trading with a brighter outlook is the addition to Musk’s collaboration with newly-elected President Donald Trump. When Musk first agreed to participate as one of Trump’s council of business leaders, much consternation arose among Tesla fans. The President has reiterated a strong stance since then on creating U.S. jobs by bringing the workforce back into the U.S.

But, with Tesla increasing production at its California plant and returns quickly mounting at its Gigafactory in Nevada, the Tesla Effect is jobs, jobs, jobs. Tesla is already well on its way to accelerating the world’s transition to sustainable mobility by producing electric vehicles in sufficient volume and forcing change in the automobile industry.

Trump urged U.S. car manufacturers on Tuesday to build more cars in the U.S as part of a plan to discourage the car industry from investing abroad. In response, the Big Three voiced concerns about fuel efficiency standards, trade policy, and regulatory concerns.

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Silencing the roaring bears

With more cash on hand than expected, Tesla has wilted the case of the more aggressive bears. At the end of 2016, analysts noted increased company efficiency, which dampened the previous overarching view that Tesla would need a capital infusion in early 2017. So, too, in Tesla’s favor is its ability to sell carbon credits against its zero emissions vehicles. With former Audi exec Peter Hochholdinger now on payroll to improve and accelerate production, Tesla will also only improve in its production methodology.

As Tesla’s production process shifts to widespread automation through machines that build machines, these and other improvements have diminished the bear case against Tesla. Certainly, 2017 and beyond contain challenges for Tesla. But, at least for now, Tesla has made significant strides to move the Wall Street bulls a lot closer to its point of view.

Carolyn Fortuna is a writer and researcher with a Ph.D. in education from the University of Rhode Island. She brings a social justice perspective to environmental issues. Please follow me on Twitter and Facebook and Google+

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Tesla receives its first robotaxi permit in California

Tesla’s robotaxi services are one step closer to making it to California.

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Credit: Tesla

Ahead of Tesla’s plans to roll out a fleet of commercial robotaxis, the company has gained its first permit in a series of those needed to begin operating driverless ride-hailing services in California.

On Monday, the California Public Utilities Commission (CPUC) announced the approval of Tesla’s application for a charter-party carrier permit, which licenses the company to run ride-hailing and chauffeur services in the state, according to a report from Reuters on Tuesday.

The permit allows Tesla to own and operate a chauffeur fleet for certain commercial purposes, including the ability to transport employees across pre-arranged navigation routes. However, this permit does not yet offer full approval for ride-hailing or autonomous vehicle use.

Still, the permit comes as the first in a series of those Tesla will need to launch a highly-anticipated autonomous robotaxi business, which is expected to begin rolling out in Texas and California this year. Tesla also released its two-seat, steering wheel-less Cybercab at an event in October, eventually expected to be the basic fleet vehicle for driverless ride-hailing purposes.

You can see Tesla’s render for a ride-hailing mobile app below, along with Teslarati’s coverage of the October 10 “We, Robot” unveiling event for the Cybercab.

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Credit: Tesla

READ MORE ON TESLA’S ROBOTAXI BUSINESS: Tesla flexes Robotaxi wireless charging — autonomy from top to bottom

In California, the CPUC will also co-manage regulatory needs for autonomy approval for Tesla, alongside the Department of Motor Vehicles (DMV).

During Tesla’s Q3 earnings call last November, Elon Musk said that Tesla employees in the Bay Area were already testing a ride-hailing service internally. Using an app, Musk said employees could already request rides and be taken to anywhere in the Bay.

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Meanwhile, Tesla is aiming to roll out initial unsupervised rides as a service in the Austin, Texas area this summer, based on its Full Self-Driving (FSD) software. The system is first expected to be usable on individual owners’ vehicles, eventually using the recently unveiled Cybercab autonomous vehicle on a wider scale.

Tesla also hopes to expand the service to other states by the end of the year, though it’s not yet clear where.

Tesla mobile app tracker reports first lines referencing robotaxi service

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Tesla has joined the Australian Energy Council

Tesla Energy will join a top energy council in Australia, as it continues to deploy a wide range of battery projects in the country.

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Credit: Tesla Megapack | X

Tesla has been announced as the most recent member to join an industry group of electricity and energy businesses in Australia, coming amidst a wave of grid- and home-scale battery deployments in the country from the U.S. manufacturer.

Last week, Tesla Australia officially joined the Australian Energy Council (AEC) as the group’s newest member, contributing to a group of companies that administers gas and electricity to over 10 million homes. The news, announced in a post on LinkedIn, comes as Tesla continues to expand the presence of its grid-scale Megapacks and home-scale Powerwalls in Australia and elsewhere,

The council wrote the following announcement message in the post:

AEC membership provides an opportunity to collaborate to develop the solutions necessary to drive Australia’s energy transition. Together, we aim to create positive outcomes for consumers across the nation as the energy system decarbonises.

We look forward to working closely with Tesla Australia to help shape the future of Australia’s energy landscape.

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The announcement also garnered a response from Tesla Energy’s Regional Director for the Asia-Pacific region Josef Tadich, who shared a few words about the news in another post:

A big thank you to Louisa Kinnear and the Australian Energy Council, Tesla are very much looking forward to working together in this space, in what is turning out to be an exciting 2025.

Wholesale and retail electricity markets are rapidly adapting and changing to new technologies, with more renewables and storage on the supply side, and more generation and flexible loads on the Customer demand side with VPPs, and controllable EV charging loads to name a few. Great time to be in this dynamic space!

READ MORE ON TESLA ENERGY IN AUSTRALIA: Tesla building battery repair facility near Collie Megapack project

The announcement comes as Tesla has shipped Megapacks to a handful of energy storage sites in Australia, including a 1,600MWh Tesla Megapack facility in Plumpton, Victoria that’s expected to turn on sometime this year. Tesla is also working on expanding the Western Australia “Collie” battery, which will feature 2,240 MWh of Megapack storage upon completion of phase two.

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While the U.S. company currently builds its Megapacks at a so-called “Megafactory” in Lathrop, California, the company began production last month at a second Megafactory in Shanghai, China that’s expected to supply future energy projects in Australia. The company has also teased plans for a third Megafactory, though it isn’t yet clear where that could be built.

In addition to Tesla’s grid-scale Megapack batteries, the company also builds the Powerwall home-scale battery, which can be used for households or commercial buildings to store energy, along with being able to deploy energy back to the grid. Tesla also launched its next-generation Powerwall 3 in the Australian market last year.

The company utilizes its network of Powerwall owners to create giant, distributed batteries, called Virtual Power Plants (VPPs), effectively letting owners sell electricity back to the electrical grid during periods of peak demand. These programs are being utilized across much of Australia and several other markets throughout the world, and Tesla said in October that it had reached over 100,000 Powerwalls participating in VPPs worldwide.

Tesla Energy secures $375M Megapack contract

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Tesla arsonist set himself on fire after throwing Molotov cocktail: authorities

Witnesses reported that the suspect caught fire mid-act, with one device scorching his back as he fled.

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Credit: Tesla Asia/X

An arson attempt targeting a Tesla charging station in South Carolina left the suspect engulfed in flames and facing up to 20 years in prison, authorities have stated. 

The suspect allegedly torched three chargers in a protest against President Trump and Tesla CEO Elon Musk, scrawling anti-Trump graffiti before accidentally setting himself ablaze with his own Molotov cocktails, as noted in a New York Post report.

Arsonist Burns Self in Tesla Protest

Federal prosecutors stated that 24-year-old Daniel Clarke-Pounder hurled five Molotov cocktails at a Tesla charging station in North Charleston, igniting three chargers while leaving messages like “f–k Trump” and “long live the Ukraine” in the area. Witnesses reported that Clarke-Pounder caught fire mid-act, with one device scorching his back as he fled, according to a police report cited by WCBD.

“The suspect had accidentally caught their own back on fire while throwing the devices,” an initial police report noted. Clarke-Pounder was arraigned in federal court, though his injuries remained undisclosed.

Backlash Targets Musk’s Tesla Empire

The fiery incident follows a wave of hostility toward Tesla, fueled by Musk’s leadership of the Department of Government Efficiency (DOGE) under U.S. President Donald Trump. Over the past months, Teslas have been subjected to vandalism incidents, and some locations have been shot up. In some cases, Tesla locations have been attacked with Molotov cocktails.

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Officials such as President Donald Trump and Attorney General Pam Bondi have issued stern warnings against those who wish to attack Tesla and its customers. Trump, for one, pledged that anyone caught attacking American companies like Tesla will “go through hell.”

“No Place in Our Community”

Acting U.S. Attorney Brook B. Andrews condemned the attack, stating, “While we will defend the public’s right to peaceful protest, we will not hesitate to act when protest crosses the line into violence and mayhem.

“These kinds of attacks have no place in our community… We must remain united in our commitment to safety and respect for all, regardless of political differences.”

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