Tesla investors have renewed hopes after reports suggested Elon Musk will be stepping back from his government role. According to a Politico report, Musk told those close to him that he would depart in coming weeks, which has broad implications for Washington and Wall Street.
The news led to a surge in Tesla stock prices, with the company’s shares increasing 11% on Wednesday after being down 4.6% earlier in the day.
Musk had faced criticism from investors and analysts for his leadership style, particularly regarding his management of Tesla’s stock price. The company has seen its value decline by roughly one-third this year, significantly below the market average.
Musk’s support for former US President Donald Trump on the campaign and during his first 100 days in office was seen as a move to gain favor with the administration and advance Tesla’s AI and autonomous ambitions. However, it appears Musk may have overplayed his hand, given the recent stinging defeat of a conservative judge who Musk had supported.
Musk’s involvement in politics has made him enemies among Democrats and Republicans alike, who see him as a villain to one party and a liability to the other. The news of his potential departure from public service has been met with relief by investors and others who had grown tired of his polarizing behavior.
Source: https://finance.yahoo.com/news/musk-stepping-away-from-doge-would-be-good-news-for-trump-and-tesla-morning-brief-100100348.html