Tesla shares surged 5% on Wednesday following a report from Politico, which suggested that CEO Elon Musk might step down from his role at the Department of Government Efficiency (DOGE). This move could allow Musk to focus more on Tesla, which has been struggling with recent setbacks.
The rise in Tesla’s stock follows a difficult period. The company’s shares had dropped 6.4% earlier in the day after weaker-than-expected vehicle deliveries for the first quarter. Despite Wednesday’s gains, Tesla’s stock has fallen over 5% in the last month and more than 31% year-to-date. The first quarter saw a dramatic 36% drop, marking the company’s biggest quarterly decline since 2022.
The report by Politico highlights that Musk’s role in the Trump administration may be contributing to Tesla’s financial woes. Sources within the Trump camp indicated that while President Trump is pleased with Musk’s work on DOGE and his spending cuts, both parties have agreed that Musk should return to focus on his businesses soon.
Musk’s involvement in government matters has sparked widespread protests, boycotts, and even violent attacks on Tesla stores globally. Additionally, Trump’s automotive tariffs have raised concerns about their impact on Tesla’s key suppliers in Mexico and China.
At a rally in Green Bay, Wisconsin, Musk addressed Tesla’s stock decline, stating that the job was “very expensive.” He also faced backlash for his involvement in political races, particularly in Wisconsin, where his influence was criticized.
Meanwhile, New York City Comptroller Brad Lander called for legal action against Tesla, claiming Musk’s role in the White House undermines his commitment to Tesla.
Tesla’s future remains uncertain, but Musk’s return to his business could bring much-needed focus.
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