Tesla Stock Rises on Political Praise Amid Operational Challenges
Tesla shares gained 3% to $451.05 following former President Donald Trump's public endorsement of Elon Musk as a "great innovator" and Tesla as a symbol of American technological leadership. The political boost comes despite disappointing Q4 2025 vehicle deliveries of 418,227 units, marking a 16% year-over-year decline and missing analyst expectations.
The company's Optimus humanoid robot project faces commercialization delays, with prototypes still requiring manual assembly and lacking fine motor skills. Cantor Fitzgerald maintained its Overweight rating and $510 price target, citing potential catalysts including Full Self-Driving expansion into China and Europe.
Tesla's energy storage business emerged as a bright spot, deploying a record 46.7 GWh in 2025, up 49% from the previous year. The stock movement reflects the market's response to political sentiment overshadowing fundamental challenges.
