Photo: BRENDAN SMIALOWSKI / AFP / Getty Images
Elon Musk is reportedly stepping back from his role in the Department of Government Efficiency (DOGE), a move that has caused Tesla's stock to rise. According to a report by Politico, President Donald Trump has informed his inner circle that Musk will reduce his government duties in the coming weeks. This decision comes amid controversies surrounding Musk's involvement in government roles and his political donations, which have sparked protests against Tesla.
Musk's departure from DOGE is seen as a joint decision between him and President Trump, with the latter expressing satisfaction with Musk's contributions. Although Musk's exact reasons for stepping back are unclear, his shift in focus back to Tesla has been welcomed by investors, despite the company's recent challenges.
Tesla reported a significant drop in first-quarter deliveries, with only 336,681 units delivered compared to an estimated 390,342. The company's sales have been declining in key markets, including Europe, where registrations have fallen sharply. Analysts suggest that Musk's return to Tesla could help address these issues, although some believe that his association with controversial political activities may continue to impact the brand.
Musk is expected to retain an informal advisory role with the White House, and his departure from DOGE may allow him to concentrate more on Tesla's operations. The company is set to report its first-quarter earnings on Tuesday, April 22.