Elon Musk’s Commitment to Tesla Might Not Save It as Stock Drops Further
Tesla stock is back down after it surged following Elon Musk announcing he would step back from some of his DOGE duties.
Quick overview
- Elon Musk plans to reduce his involvement in government starting in May, which may positively impact Tesla's stock.
- Tesla's stock has recently dropped by 1.25%, returning to its early 2025 levels amid concerns over sales and public sentiment.
- Musk's connection to President Trump has led to protests and vandalism against Tesla, further affecting sales.
- Tesla is working on new models and driverless taxi technology to improve its market position.
Tesla CEO Elon Musk has promised to step back from his government post in a big way starting in May. He serves as the senior advisor to US president Doanld Trump, and his car company is in trouble.
Tesla stock is down for Monday by 1.25%, bringing it to $281. That is right back where the stock price started off in 2025, and a recent upward trend has been very helpful in getting the company back on safe footing. Once Musk announced he would be cutting back on how much time he spends as part of DOGE (Department of Government Efficiency), the Tesla stock price shot up. That surge lasted until Monday, and now it is falling again.
Rumors circulated that Musk would be stepping down or stepping back from DOGE in the near future since Tesla sales were significantly lower than last year and their stock price had been dropping for a while. There have also been numerous protests and acts of vandalism taking place at Tesla dealerships and manufacturing facilities, and individual Tesla vehicles on the roads have been attacked as well- all due to the connection Musk has to President Trump.
Public sentiment toward Tesla has greatly diminished since Musk allied himself with Trump, and it has only gotten worse since Trump took office. This has seriously affected Tesla sales, but those numbers have also been hurt by the saturation of electric cars in the market as well as the lack of new Tesla vehicles.
A Step in the Right Direction
Tesla could benefit greatly from Musk prioritizing the company once more. It is obvious that shareholders think so. Now, Musk is not likely to step down completely from his work at DOGE. Trump has said he will keep Musk on with him as long as he can, and Musk is scheduled to be a part of this administration until next year.
If he does devote more time to the company he helped to make so successful, then that could mean greater profits for Tesla. Right now, the stock market has moved based on potential stock value and the potential that Musk’s involvement will have on the company.
Tesla has a few plans in the pipeline for the year, including a new model designed to be cheaper and more widely accepted by the mainstream buyer. They are also making progress on a driverless taxis technology that could be instituted by next year.
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