By Emma Whitaker 
Tesla’s stock surged over 4% on Monday, June 9, shrugging off downgrades from two investment firms and ongoing tensions between CEO Elon Musk and President Donald Trump. The rally comes as investors bet on the anticipated unveiling of Tesla’s self-driving Robotaxi on June 12.
Argus Research and Baird cut Tesla’s rating from “buy” to “hold,” citing concerns over weakening demand for electric vehicles, the expiration of EV tax credits, and Musk’s public spat with Trump. Argus analysts noted, “The deteriorating relationship between Musk and Trump, combined with policy shifts, could dampen Tesla’s growth prospects.” Baird echoed these sentiments, pointing to lofty valuations—Tesla’s price-to-earnings ratio hovers around 150—intense competition, and Musk’s “key person risk” as additional headwinds.
Despite a 24% year-to-date decline, Tesla’s stock closed at $308.58 on Monday, rebounding from a nearly 40% drop since its December peak. The recent slide was exacerbated by a public feud between Musk and Trump, though Musk has since signaled a willingness to de-escalate.
On Monday night, Trump offered an olive branch, confirming that Starlink services would remain in the White House and wishing Musk well. However, he took a jab, saying he might park his Tesla elsewhere, adding, “If I were Elon, I’d want to have a conversation with me.”
The market’s focus, however, is firmly on Tesla’s upcoming Robotaxi launch. While the company has not officially confirmed the June 12 date, executives reiterated in an April 22 earnings call that the project remains on track. Investors appear to be banking on the autonomous taxi as a game-changer, driving Monday’s gains despite the downgrades and political noise.
Ethan Caldwell 
Andreas Lundberg