Following the news of Elon Musk leaving the Department of Government Efficiency (DOGE), the stock of the billionaire’s company, Tesla, on Wednesday rose. By the time the market closed, the stock went up by 5%, rebounded from the session low of 6.4%.
According to Trump insiders, Musk may return to his electric vehicle business soon despite a positive view from the U.S. President Donald Trump for the work he accomplished at DOGE, cutting much federal spending across several agencies.
NBC News even reported that Trump had informed the cabinet that the leaving will happen in the coming months. One senior government official also stated that the billionaire will leave as soon as Musk’s 130-day period as a special government employee is over.
Still, the White House and Musk himself both sent messages indicating that the report of leaving is false.
Musk’s Tesla has been on a challenging road recently. His role in the White House triggered several waves of protests, boycotts, and violent attacks on Tesla stores and vehicles not just in the US, but also around the world.
Trump’s tariffs also have an effect on Tesla as well since Mexico and China, two key suppliers of the electric vehicle company, are involved.
Over the past month, Tesla stock dropped more than 5%, and on the year to date level, the stock already dropped by more than 31%. As for this year’s first quarter performance, Tesla saw the drop of its stock by 36%, the biggest quarterly drop since 2022.
