Elon Musk’s Possible Departure from DOGE Boosts Tesla Stock

Tesla’s stock (TSLA) experienced a notable surge following reports that CEO Elon Musk is set to leave his position at the Department of Government Efficiency (DOGE).

Investors reacted positively to the possibility that Musk would redirect his focus to Tesla, despite ongoing concerns regarding the company’s brand image, which many attribute to Musk’s controversial actions and political donations.

The optimism surrounding Tesla’s stock was briefly tempered when the company reported first-quarter delivery results that fell significantly short of expectations, resulting in an initial 5% decline.

Experts Skeptical That Musk’s Focus on Tesla Will Solve Ongoing Brand Issues

However, shares bounced back quickly, climbing 5% as rumors circulated—prompted by a report from Politico—that Musk’s exit from DOGE could be imminent. It remains unclear if this decision comes as a result of external pressure or if Musk is stepping back voluntarily.

Musk’s recent political expenditures have raised eyebrows; he reportedly spent over $25 million supporting a losing candidate in the Wisconsin Supreme Court election.

This involvement, combined with his tenure at DOGE—an office criticized for misrepresenting its effectiveness—has sparked resentment and protests against Tesla. Many activists perceive Musk’s financial contributions as supporting a troubling political agenda, complicating Tesla’s relationship with its customer base.

While the news of Musk’s potential departure from DOGE might suggest a plan to ameliorate brand issues, experts remain skeptical. Many believe the damage is already done, and simply choosing to focus more on Tesla doesn’t absolve him of the fallout linked to his past actions.

Furthermore, with Tesla launching only one new vehicle, the Cybertruck, in the past five years, concerns about the company’s innovation trajectory persist. The consensus among critics is that Musk’s influence is more likely to perpetuate Tesla’s meme stock status, as its valuation hinges increasingly on his reputation rather than tangible business success.