**Elon Musk's Political Engagement, Legal Battles, and Tesla's Market Rollercoaster**

ICARO Media Group
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28/10/2024 19h09

**Elon Musk’s Political Engagement, Legal Struggles, and Tesla’s Market Movements**

Tesla CEO Elon Musk has recently taken the political stage, making an appearance at a town hall in Lancaster, Pa., to support former President Donald Trump's bid for a second term in the White House. During his speech, Musk emphasized the importance of establishing a self-sustaining city on Mars, noting the novel status humans would hold on the Red Planet by stating, "we will be illegal aliens on Mars."

Back on Earth, Musk's endeavors have not been without controversy. Philadelphia District Attorney Larry Krasner has criticized Musk’s $1 million giveaway to registered voters, labeling it an "illegal lottery scheme." Krasner has taken legal action against Musk and the pro-Trump group backing this initiative. Additionally, the U.S. Justice Department has warned Musk’s super PAC regarding potential violations of federal laws that prohibit offering cash in exchange for voter registration.

Amid these controversies, Musk continues to manage Tesla and recently introduced the company's first robotaxi prototype. However, the lack of details left investors unimpressed, causing Tesla shares to fall the day after the announcement.

Despite the hiccup with the robotaxi, Tesla reported better-than-expected third-quarter earnings on October 23. The company saw profit margins increase by nearly two percentage points due to reduced production costs and stable global pricing for its electric vehicles. Buoyed by these results, Tesla's stock saw a surge, although analysts remain cautious. Bob Byrne of TheStreet Pro suggested that the stock might need time to stabilize before it can sustain long-term gains.

Looking forward, Musk is optimistic about Tesla's growth, projecting a 30% increase in vehicle sales next year driven by a new, more affordable model and advancements in self-driving technology. However, Wall Street remains skeptical. Analysts like Sam Fiorani from AutoForecast Solutions doubt that Tesla can achieve a 20% growth rate given the recent slowdown in demand.

Investor sentiment reflects this divided outlook. Analysts at Canaccord Genuity maintained a positive stance, raising their price target for Tesla to $298, citing the company's innovative approach and growth opportunities in electric vehicles, autonomy, energy storage, and robotics. On the other hand, Bernstein analysts remain cautious, keeping their underperform rating and a $120 price target, questioning the sustainability of Tesla's recent margin improvements and future growth.

As Musk navigates his political, legal, and business endeavors, the world watches closely to see how these various facets of his career will unfold.

The views expressed in this article do not reflect the opinion of ICARO, or any of its affiliates.

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