Tesla shares recovered on Wednesday after an unconfirmed rumor that Elon Musk, the CEO of Tesla Motors Inc. could be stepping down soon from his White House position. This would allow him to refocus his attention back on Tesla’s struggling electric car (EV) manufacturer.
Politico reported the news first. Trump administration officials claim that President Donald Trump and Musk recently decided on Musk’s departure from DOGE.
Tesla stock soared by 4% following the release of this report. This reverses earlier losses up to 6,4% caused by poor first-quarter deliveries.
Tesla reported 336 681 deliveries in Q1 2025. This was below analyst expectations, and investors are now more concerned about Tesla’s position on the market.
Tesla stock struggles despite rebound
Tesla’s shares are still under pressure despite Wednesday’s gains.
In the last month the share price has dropped by over 5%. The losses for the year to date are more than 31%.
This first quarter saw the steepest drop since 2022.
Musk’s participation in the Trump Administration has created a new level of instability. Musk’s role as a White House official has caused a backlash that includes protests and boycotts. Tesla stores have also been targeted.
The uncertainty surrounding Tesla’s production and supply chain has also been exacerbated by Trump’s auto tariffs against key suppliers from Mexico and China.
Musk’s leadership is causing investor concerns
Musk has long been a source of concern for investors, who worry about his divided focus, as he juggles roles in Tesla, SpaceX and X (formerly Twitter), not to mention the White House.
Musk, at a rally held in Green Bay (Wisconsin) on Sunday, acknowledged the stock’s decline. He said, “My Tesla share, as well as everyone else’s have been roughly halved.” The job has proven to be expensive.
Brad Lander, the New York City Comptroller Brad Lander called on NYC pension funds to take possible legal action against Tesla.
Lander’s Office accused Tesla in a Tuesday statement of misleading its shareholders, claiming that Musk is still actively involved with the management of Tesla despite spending significant time on government work.
The statement stated that the basis for potential litigation was Tesla’s misstatements about Musk’s involvement in the company.
His leadership at DOGE, and his promotion of policies which actively hurt Tesla’s business, contradicts previous claims about his hands-on managerial style.
Musk’s resignation from the White House could ease investor concerns, while allowing him to focus on Tesla’s problems, such as slowing demand for EVs, increased competition in EVs, and risks to supply chains.
No official confirmation has yet been given of the departure.
Post Elon Musk leaving DOGE? Tesla shares rise amid unverified reports. This post may change as new information is released.
