MW This investor has millions in Tesla. Here's his big wish for Elon Musk.

By Claudia Assis

Tesla's stock rallies nearly 10% Monday, extending winning streak

Christopher Tsai has held Tesla Inc. shares since February 2020, when he bought the stock for $41.66. With the stock having gained sixfold since then, he is hoping Elon Musk cuts short his time at DOGE.

"Elon has created tremendous value for his shareholders over time, and we very much support Elon as the CEO of Tesla," said Tsai, the president and chief investment officer of Tsai Capital, which has about $140 million in assets under management.

The firm, however, hopes Musk's time at the so-called Department of Government Efficiency is "short-lived, and history suggests that it will be," Tsai said in an interview with MarketWatch.

Tesla $(TSLA)$ is the fund's top holding, according to its most recent filing with securities regulators, followed by building-products distributor QXO Inc. (QXO) and Apple Inc. $(AAPL)$.

Tesla shares were rising nearly 10% on Monday, looking at their highest close in nearly three weeks and on track for their biggest one-day percentage increase since Nov. 6.

After a string of losses last week, the stock is up for four straight days, advancing nearly 21% over the period. It is down 33% this year, underperforming the S&P 500 index SPX, but up about 60% in the past 12 months, well outpacing the broader index.

Don't miss: Trump just bought a Tesla, but many other owners are selling their Musk-made EVs. What's going on?

Tsai sees parallels between today's concerns and the worries that were ignited when Musk bought Twitter in 2022 and took the social-media platform private, renaming it X.

"He went all in trying to right the ship, so to speak, with Twitter," then pulled back, Tsai said. "You clearly see a pattern of going in and then exiting and moving on. So many investors thought that he had lost his way and that he would only focus on Twitter."

Tsai makes a distinction between Musk's involvement in DOGE and his involvement in government more broadly. By maintaining close ties with the Trump administration, Musk could have the ability to help shape policy that could be positive for Tesla in the years to come, specifically when it comes to self-driving technologies, Tsai said.

"We don't see the benefit to Tesla as a company because of his involvement in DOGE," he said.

Musk's actions with DOGE and other aspects of the political sphere, including voicing support for the far right in Europe, have been followed by protests at Tesla facilities, vandalization of Tesla electric vehicles and altercations between protesters and Tesla owners.

For Tsai, "there's probably somewhat of a link between his involvement with DOGE and recent protests."

Tsai Capital does not make an investment unless it intends to hold the stock for at least five years, Tsai said.

"We passed the five-year mark with Tesla just last month. And we are extremely positive about the future of Tesla as a company and where the stock is headed," he said.

-Claudia Assis

This content was created by MarketWatch, which is operated by Dow Jones & Co. MarketWatch is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

March 24, 2025 12:08 ET (16:08 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.