Elon Musk is coming back to Tesla as the electric car giant sees a steep stock drop of more than 30%.

His return to the company has calmed investors, causing a big market bounce. Tesla shares jumped 12% on Monday to $278.39, their highest performance since the presidential election in November. The rally carried over to Tuesday with the stock gaining another 2.8% to $286.

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Wedbush analyst and Tesla stalwart Dan Ives had this to say about the stock action, “The stock was way oversold and is bouncing as Musk is back in charge and trying to balance DOGE and Tesla.”

Musk Addresses the Employees

Musk addressed Tesla employees last week in response to market concerns. “What I’m here to tell you is that the future is incredibly bright and exciting,” he said. “And we’re going to do things that no one I think has even dreamed of.”

Ives noted the effect of Musk’s intervention, adding, “Musk picked up last week with the all-hands meeting, and that gave a much-needed positive message to employees and investors.”

In spite of the stock bounce, Tesla is still facing strong competition. Byd, a Chinese automaker, recently surpassed Tesla in yearly sales, showing $107 billion in revenue versus Tesla’s $97.7 billion.

At the same time, Musk’s position in the Department of Government Efficiency (DOGE), a cost-cutting program aimed at Trump administration spending, has been controversial. His actions have provoked mass protests, leading to vandalism of Tesla showrooms and damage to company cars.

The backlash has not escaped political notice, with previous President Donald Trump denouncing the vandals as ‘terrorists’. To respond, the FBI declared Monday that it was creating a task force to analyze the events.

Ives recognized the persistence of issues, saying, “There is still a brand crisis tornado in the works, but we are viewing numerous flood Tesla dealerships rally behind Musk using these protests piling up.”