Tesla (TSLA) Stock Prediction & Analysis: Price Surges as Elon Will Ditch DOGE Role

Tesla (TSLA) Stock Prediction & Analysis: Price Surges as Elon Will Ditch DOGE Role

TLDR

• Tesla stock surged 5.1% despite initially falling 6.4% after disappointing Q1 deliveries
• Report from Politico suggests Elon Musk may soon leave his role at Department of Government Efficiency (DOGE)
• Investors appear optimistic about Musk potentially refocusing on Tesla
• Musk’s political involvement has created brand issues for Tesla
• Tesla’s Q1 delivery numbers missed already lowered expectations

Tesla shares rebounded Wednesday, gaining 5.1% despite starting the day with a 6.4% drop following the release of quarterly delivery numbers that missed expectations.

The recovery came as both the S&P 500 and Nasdaq Composite moved higher, up 0.5% and 0.9% respectively.

A new report from Politico appears to be the main catalyst for the stock’s turnaround. The report suggests CEO Elon Musk may soon leave his position at the Department of Government Efficiency (DOGE).

According to the report, President Donald Trump and Musk decided in recent days that the billionaire would return to focusing on his businesses. This comes despite Trump reportedly being pleased with Musk and the spending cuts implemented during his tenure.

Musk’s involvement in politics has made him an increasingly divisive figure. His role in the Trump administration has frustrated many Tesla investors.

Investor Concerns About Musk’s Focus

Many shareholders feel Musk has neglected his duties as Tesla CEO given the requirements of running a government initiative. This comes at a particularly challenging time for the electric vehicle maker.

The concerns about Musk’s divided attention have even prompted potential legal action. New York City Comptroller Brad Lander recently urged the city to sue Tesla on behalf of NYC pension funds.

The potential lawsuit cites material misstatements from Tesla claiming that Musk “spends significant time on the company and is highly active in its management, despite his helming the Trump Administration’s DOGE initiative.”

Tesla’s stock initially dropped today after the company released quarterly delivery numbers that fell short of already reduced expectations.

The company has experienced declining sales globally. Some analysts attribute this partly to backlash against Musk’s political activities.

Political Activities and Brand Impact

Musk’s political donations have become increasingly controversial. He recently spent over $25 million supporting the Republican candidate in the Wisconsin Supreme Court election.

His efforts at DOGE have also drawn criticism. The department has faced accusations of overreporting savings and making several major mistakes requiring retraction.

These political activities have led to protests against Tesla. Some critics view the company as Musk’s “personal piggy bank” to finance his political agenda.

It remains unclear whether Musk is being pushed out of his DOGE role or leaving voluntarily. The report only indicates that Trump has informed his inner circle about the upcoming change.

Some market observers question whether Musk’s departure from DOGE will actually address Tesla’s brand issues. The damage to Tesla’s reputation may already be substantial.

Others are skeptical about whether Musk spending more time at Tesla will improve the company’s operations. Critics point out that Tesla has launched only one new vehicle in the past five years—the Cybertruck—which has had a mixed reception.

Despite these concerns, investors appear to be betting that Musk’s renewed focus on Tesla could help turn around the company’s fortunes.

Tesla’s recent performance has been challenging across multiple metrics. Sales have declined, and the company’s self-driving technology—a major focus for Musk—continues to face hurdles.

Analysts are expected to revise their full-year projections for Tesla following the weaker-than-expected first quarter delivery numbers.

Whether Musk’s potential exit from his government role will translate to improved performance for Tesla remains to be seen. The stock’s reaction suggests investors are cautiously optimistic about this development.

The post Tesla (TSLA) Stock Prediction & Analysis: Price Surges as Elon Will Ditch DOGE Role appeared first on CoinCentral.