Musk "let go" politics, take over automatic driving and AI strategy to boost confidence. Bulls reignite passion for Tesla, Inc. (TSLA.US).

Although Tesla, Inc.'s first-quarter delivery volume and profits both saw significant declines, the stock price continued to rise against the trend in pre-market trading on Wednesday. The company had previously emphasized that it was making steady progress in key projects related to autonomous driving and artificial intelligence. Due to the impact of changes in global trade policies, Tesla, Inc. did not provide full-year delivery guidance, but investors were reassured by Musk's commitment to focus more on the company's business. Musk stated during the earnings conference call that he would significantly reduce his involvement in government efficiency affairs. He stated that as long as the president needed him, he would continue to spend one or two days a week handling government-related matters. In response to this, Wedbush Securities raised Tesla, Inc.'s target price from $315 to $350. Analyst Dan Ives emphasized, "In our view, this is an opportunity for Musk to disengage from the Trump White House affairs. After months of global brand damage, political storms, and various chaotic situations, Musk's turbulent political chapter is finally coming to an end. We expect that even if Musk focuses on DOGE in the future, his time commitment will be minimal." Morgan Stanley warned that the market's general expectations for Tesla, Inc. were likely to continue to be revised downwards, but the gap between actual performance and expectations largely remained within the range of lower buyer expectations. The company also emphasized that it maintained positive free cash flow in the quarter. Adam Jonas stated that Tesla, Inc. reaffirmed the timeline for AI-related projects (such as Cybercab and Optimus), which eased investor concerns slightly. Bank of America Corp believes that Tesla, Inc.'s first-quarter performance was slightly better than expected, but they still maintain a "neutral" rating on the electric vehicle stock. Analyst John Murphy noted that Tesla, Inc.'s first-quarter gross margin was negatively impacted by increased promotional incentives and a decrease in average vehicle selling prices, but still better than expected. He stated, "Operating expenses increased due to investments in artificial intelligence and other research and development projects." As of the time of writing, Tesla, Inc. was up over 7% in pre-market trading, at $256.31.