Tesla stock jumps on report that Musk may soon be leaving the White House
Just after an unexpectedly low sales report this morning, Tesla investors got some unexpectedly good news: Elon Musk may soon be leaving the White House, giving him more time to focus on his companies.
Politico published a story saying that Musk, Tesla’s CEO, would “soon” be stepping back from his role as “governing partner, ubiquitous cheerleader and Washington hatchet man” at the White House.
Shares of Tesla quickly reversed their losses for the day and were recently up 3.7%.
“The president remains pleased with Musk and his Department of Government Efficiency initiative but both men have decided in recent days that it will soon be time for Musk to return to his businesses and take on a supporting role,” according to the report.
Tesla released underwhelming delivery numbers this morning, pushing the stock down more than 5% as investors lamented the toll Musk’s work at the Department of Government Efficiency was having on the electric vehicle company.
“The more political he gets with DOGE the more the brand suffers, there is no debate,” Wedbush Securities analyst Dan Ives wrote this morning. “This quarter was an example of the damage Musk is causing Tesla.” The idea that Musk spends too much time with his non-Tesla endeavors is one long held by company critics and even Tesla itself. Among the risk factors in its annual report, it says, “He does not devote his full time and attention to Tesla.”
Musk certainly won’t have his attention on Tesla full time after this: he also runs SpaceX, The Boring Co., and a combination of X and xAI. But investors view it as favorable nonetheless.
Shares of Tesla quickly reversed their losses for the day and were recently up 3.7%.
“The president remains pleased with Musk and his Department of Government Efficiency initiative but both men have decided in recent days that it will soon be time for Musk to return to his businesses and take on a supporting role,” according to the report.
Tesla released underwhelming delivery numbers this morning, pushing the stock down more than 5% as investors lamented the toll Musk’s work at the Department of Government Efficiency was having on the electric vehicle company.
“The more political he gets with DOGE the more the brand suffers, there is no debate,” Wedbush Securities analyst Dan Ives wrote this morning. “This quarter was an example of the damage Musk is causing Tesla.” The idea that Musk spends too much time with his non-Tesla endeavors is one long held by company critics and even Tesla itself. Among the risk factors in its annual report, it says, “He does not devote his full time and attention to Tesla.”
Musk certainly won’t have his attention on Tesla full time after this: he also runs SpaceX, The Boring Co., and a combination of X and xAI. But investors view it as favorable nonetheless.
