Elon Musk Reportedly Stepping Back from DOGE—Tesla Stock Surges in Response

Tesla investors are finally seeing a silver lining after months of turbulence. Reports suggest that Elon Musk may be stepping back from his government role in the coming weeks—news that has Wall Street buzzing and Tesla stock soaring.

While the White House dismissed the claims as "garbage," the stock market had a different reaction. Tesla shares, which had plummeted 4.6% due to weak delivery numbers, made a stunning comeback, closing 5% higher as investors welcomed the possibility of Musk focusing more on Tesla.

For years, Musk has been accused of being a "distracted CEO," juggling multiple ventures from Tesla and SpaceX to Twitter and his controversial political involvement. His deep dive into politics—especially his close ties with Donald Trump—was seen as both a power move and a risk. While it initially helped Tesla navigate regulations, Musk’s outspoken nature has made him a polarizing figure, drawing criticism from both Republicans and Democrats.

Tesla’s stock has had a rough year, losing about a third of its value, making it one of the worst-performing tech giants. Investors have been urging Musk to shift his focus back to Tesla, and now, it seems that may finally be happening.

The timing of this report is also noteworthy. It comes right after a major political setback for conservatives in Wisconsin, where a judge Musk backed lost by a significant margin. Some see this as a sign that Musk’s influence in politics is waning—making his reported decision to step back all the more significant.

For Tesla investors, this potential shift is a breath of fresh air. A more focused Musk could mean a stronger, more stable Tesla, and that’s exactly what they’ve been hoping for.

Also Read: Musk Faces Pressure to Prove He Can Lead Tesla While Managing DOGE Role