Tesla Director Purchases $1M in Stock Amid Challenges

Tesla director Joseph Gebbia has purchased over $1 million in Tesla shares at $256 each, signaling insider confidence amid significant challenges for the electric vehicle maker. The company has experienced a nearly 31% year-to-date stock decline, a 13% drop in first-quarter vehicle deliveries, and a more than 70% reduction in profits, driven by CEO Elon Musk's controversial involvement in the Trump administration's Department of Government Efficiency (DOGE), which has led to brand backlash and showroom protests. Despite these setbacks, Tesla maintains a robust year-over-year gain and a strong financial foundation, with plans to introduce an affordable EV model and a fully autonomous Cybercab by mid-2025 helping to revive investor optimism. Musk's recent announcement to scale back his government role has further improved sentiment, as reflected in the stock's modest rebound. Analysts view Tesla's outlook positively for its innovation in autonomous technology and energy storage, though caution that high valuation and ongoing operational challenges pose risks. Gebbia's insider buy is interpreted as a vote of confidence in Tesla's ability to navigate current headwinds and leverage future growth opportunities.