Elon Musk to exit DOGE role? Tesla stock rises amid unconfirmed reports

Tesla shares rebounded on Wednesday following an unconfirmed report that CEO Elon Musk could soon step down from his White House post, potentially refocusing his attention on the struggling electric vehicle (EV) maker.

The news, first reported by Politico, cites Trump administration insiders who claim Musk and President Donald Trump recently agreed on his departure from the Department of Government Efficiency (DOGE).

Tesla’s stock surged 4% after the report, reversing earlier losses of up to 6.4% triggered by disappointing first-quarter vehicle deliveries.

The company reported 336,681 deliveries for Q1 2025, missing analyst expectations and intensifying investor concerns over Tesla’s market position.

Tesla stock struggles despite rebound

Despite Wednesday’s gains, Tesla shares remain under pressure.

Over the past month, the stock has declined by more than 5%, while year-to-date losses exceed 31%.

The first quarter alone saw a 36% drop—the steepest since late 2022.

Musk’s involvement in the Trump administration has added another layer of volatility. His role in the White House has sparked backlash, including protests, boycotts, and even attacks on Tesla stores worldwide.

Additionally, Trump’s automotive tariffs on key Tesla suppliers in Mexico and China have fueled uncertainty around the EV maker’s supply chain and production costs.

Investor concerns over Musk’s leadership

Investors have long worried about Musk’s divided focus as he juggles leadership roles across Tesla, SpaceX, X (formerly Twitter), and now the White House.

At a rally in Green Bay, Wisconsin, on Sunday, Musk acknowledged Tesla’s stock decline, stating, “My Tesla shares, along with everyone else’s, have roughly halved in value. This job is proving to be very expensive.”

Adding to the controversy, New York City Comptroller Brad Lander has called for potential legal action against Tesla on behalf of NYC pension funds.

In a statement on Tuesday, Lander’s office accused Tesla of misleading shareholders by claiming Musk remains actively involved in the company’s management despite dedicating significant time to government duties.

“The basis of potential litigation is Tesla’s material misstatements regarding Musk’s engagement in the company,” the statement read.

“His leadership at DOGE and promotion of policies that actively harm Tesla’s business contradict prior claims of his hands-on management.”

If Musk does step down from his White House position, it could alleviate some investor concerns and allow him to shift focus back to Tesla’s challenges, including slowing demand, intensifying EV competition, and supply chain risks.

However, no official confirmation of his departure has been made.