Tesla’s CEO, Elon Musk, recently held an all-hands meeting that provided reassurance to both employees and investors, as noted by Wedbush analyst Dan Ives. Tesla’s stock, which had decreased by 30% since the beginning of the year, saw a turnaround on Monday, with Musk demonstrating his leadership, according to Ives.
The company has experienced over a 30% decline in its stock value this year, but a recent shift in attention by Musk towards Tesla resulted in the stock increasing by 12% on Monday, closing at $278.39, its best performance since the November presidential election. By Tuesday afternoon, Tesla’s stock continued to rise, trading at $286, up 2.8%.
This stock recovery followed a rare all-hands meeting, during which Musk advised employees against selling their shares and assured that the company would be successful. Musk conveyed optimism about Tesla’s future, stating that they aim to accomplish unprecedented feats.
Dan Ives of Wedbush, a notable Tesla analyst, observed a change in the sentiment of investors towards the company now that Musk has resumed his active role. Ives noted that Musk’s involvement in the meeting sent a positive signal to both employees and investors, suggesting the stock had been undervalued and is now increasing as Musk balances responsibilities with Tesla and the Department of Government Efficiency (DOGE).
The all-hands meeting, which was live-streamed, received praise from Wedbush analysts led by Ives, who expect Musk to reduce his involvement with DOGE in the coming months to concentrate more on Tesla.
Musk, in his capacity at DOGE, has overseen numerous layoffs and budget cuts to streamline federal spending. However, in February, the White House stated that Musk was neither in charge of nor employed by the cost-cutting agency. Musk admitted earlier in the month that he was finding it difficult to balance his business and government roles.
Last week, there were calls from Ives for Musk to refocus on Tesla, and long-time investor Ross Gerber suggested Musk either recommit to his role or allow the company to appoint a new CEO.
Tesla has also faced increased competition from China’s BYD, which surpassed Tesla with annual sales of $107 billion compared to Tesla’s $97.7 billion in revenue.
Additionally, Musk’s political activities have resulted in a rise in peaceful protests and incidents of vandalism against Tesla vehicles and showrooms. President Donald Trump condemned the vandalism, labeling the perpetrators as “terrorists,” and the FBI has established a task force to investigate these incidents.
Ives had previously warned of potential damage to Tesla’s brand due to Musk’s political involvement, but he noted growing support for Musk despite some disapproval. He remarked on the strong backing Musk receives from Tesla customers amidst ongoing protests.
This story originally appeared on Fortune.com.