Tesla Stocks Surge as Buzz Grows About Elon Musk’s Possible Departure from DOGE: What You Need to Know

Elon Musk is making headlines again, this time because he might leave his role at the White House. His possible exit from the Department of Government Efficiency could allow him to focus more on Tesla, which is facing some tough challenges. Recently, Tesla’s stock saw a brief jump of 4%, but it’s been a rocky ride. In fact, over the past month, it lost more than 5%, and since the start of the year, it has plummeted over 31%.

Tesla struggled with its vehicle deliveries in the first quarter, causing the stock to hit a significant drop of 36%, marking the largest quarterly decline since 2022. Investors are worried, as Musk’s involvement in politics seems to be affecting the brand’s image. There have been protests and even attacks on Tesla locations following his political engagements, which have painted the company in a negative light.

Musk himself acknowledged the impact of his political role, stating at a recent rally in Green Bay, Wisconsin, that his Tesla stock, along with others, has roughly halved in value. He said, "This is a very expensive job." This highlights how intertwined his business ventures and political responsibilities have become.

Moreover, New York City Comptroller Brad Lander has pushed to sue Tesla on behalf of the city’s pension funds. His office claims that Musk’s focus on his White House duties means he isn’t managing Tesla effectively. They argue that this detachment misrepresents the company’s performance.

In addition to the internal struggles, external factors like tariffs on foreign automotive parts, especially from Mexico and China, are causing further complications for Tesla. These tariffs could hinder Tesla’s production capabilities and profitability, as these regions are crucial for its supply chain.

Investors are watching closely to see if Musk will step back from politics. His decision could either boost Tesla’s stock or exacerbate the struggles the company is currently facing.

For more details on potential legal actions against Tesla, you can check out the New York City Comptroller’s report here.

Elon Musk’s next steps remain uncertain, but the link between his political role and Tesla’s stock performance is clear and raises questions about the future.

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