- Tesla Inc. (TSLA) shares rose over 4% to $279.45, rebounding from a low of $251.27, following a Politico report that CEO Elon Musk may soon reduce his role at the Department of Government Efficiency (DOGE) to refocus on his businesses.
- President Trump and Musk have agreed he will step back in the coming weeks, aligning with the end of his 130-day “special government employee” status expiring in late May or early June, though he is expected to retain an informal advisory role.
- Musk’s retreat reflects growing concerns about his unpredictability, highlighted by a 10-point election loss of a judge he supported, shifting his dynamic with Trump from a month ago when his long-term Washington presence seemed assured.
Tesla Inc. (TSLA) shares gained over 4% to $279.45 during Wednesday’s trading session, bouncing back from a low of $251.27, as investors reacted to a Politico report indicating that CEO Elon Musk may soon scale back his involvement with the Department of Government Efficiency. The report has fueled speculation about Musk’s next moves, boosting confidence among Tesla shareholders who see his potential return to full-time corporate leadership as a stabilizing force for the electric vehicle pioneer. The stock’s rally reflects the market’s keen interest in Musk’s priorities, especially as his high-profile stint in Washington appears to be nearing a turning point.
According to Politico, President Donald Trump has confided to his inner circle, including Cabinet members, that Musk’s days as a central figure in the administration – serving as a governing partner and vocal advocate – are winding down. Three Trump insiders, speaking anonymously to Politico, revealed that both Trump and Musk have recently agreed that the billionaire should shift his focus back to his business ventures, including Tesla and SpaceX, in the coming weeks. While Trump remains supportive of Musk’s work with the Department of Government Efficiency, this decision signals a recalibration of their partnership, with Musk expected to transition into a less prominent, supportive role. The 130-day window of his “special government employee” status, which exempts him from certain ethics rules and is set to expire in late May or early June, provides a logical timeline for this shift.
Musk’s step back comes amid growing unease within the Trump administration and among its allies, who have increasingly viewed his unpredictability as a liability. This perception was underscored on Tuesday when a conservative judge, publicly endorsed by Musk, lost a Wisconsin Supreme Court race by 10 points, highlighting the limits of Musk’s political sway. The setback contrasts sharply with the optimism of a month ago, when White House officials, as reported by Politico, believed Musk’s influence would endure beyond the 130-day limit. Now, his looming exit suggests a pragmatic acknowledgment of the challenges posed by his dual roles in government and industry, even as Tesla continues to innovate in a fiercely competitive market.
Despite the planned retreat, Musk’s ties to Trump are unlikely to sever completely. A senior administration official told Politico that Musk will likely remain an informal adviser, maintaining a presence around the White House, while another insider warned that expecting him to fade entirely from Trump’s sphere would be naive. This hybrid arrangement could allow Musk to leverage his Washington experience while refocusing on Tesla, where his leadership is pivotal as the company navigates production demands and technological advancements. The Politico report underscores that Musk’s influence, though reduced, will persist in an advisory capacity, reflecting his unique position at the intersection of business and policy.
For Tesla, the news of Musk’s potential return to a more dedicated role has clear implications. The 4% stock surge to $279.45 demonstrates investor enthusiasm for his renewed focus on the company, which has faced scrutiny over its growth strategy and market share. His time in Washington, while amplifying his public stature, has occasionally diverted attention from Tesla’s operational priorities. As the 130-day period nears its end, per Politico’s reporting, Musk’s transition offers a chance to realign his efforts with Tesla’s long-term goals, balancing his governmental legacy with the demands of leading a global enterprise. The interplay between these spheres will undoubtedly shape his impact moving forward.
Update:
White House Press Secretary Karoline Leavitt dismissed Politico’s report claiming that Tesla CEO Elon Musk plans to step back from government roles. In a post on X, Leavitt bluntly stated, “This ‘scoop’ is garbage.”
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