President Donald Trump expressed gratitude to Elon Musk for his contributions to the Department of Government Efficiency (DOGE) and commended Musk’s business endeavors. In May, Tesla shares surged by nearly 22%, marking the most significant increase since November 2024, as investors responded positively to Musk’s return after challenges during his tenure with DOGE.
Investors faced difficulties during Musk’s involvement with the administration, resulting in public backlash and criticism from Tesla car owners. According to Wedbush Analyst Dan Ives, Musk’s role in the Trump administration created negative impacts on Tesla’s brand, contributing to a decline in share prices, which fell to around $222 in March. This, however, was followed by recovery in late April. Despite a more than 14% decrease in 2025, Tesla’s stock remains below its December 2024 peak of $479.86.
With Musk’s departure from the White House, Ives suggested that a 20% burden on Tesla’s stock, attributed to his political role, is now lifted. Ives maintains a price target of $500 for Tesla shares, indicating a potential 44% increase from the recent close of $346.46.
Musk announced via social media his intention to focus intensively on his ventures, including X/xAI and Tesla, along with the upcoming Starship launch. Tesla is planning the much-anticipated rollout of its robotaxi on June 12. The company has been conducting successful test runs of self-driving Model Y cars in Austin, ahead of schedule. Musk also mentioned the first self-delivery from the factory to customers expected next month.
Ray Wang, founder of Constellation Research, expressed that it is early in the competition for the robotaxi market, which includes participants like Waymo and Zoox. Wang noted Musk’s ambitious predictions, which have historically been optimistic regarding timelines and numbers.
Musk concluded his tenure at DOGE on Friday, as President Trump praised his service and acknowledged his return to his expansive business portfolio, including SpaceX, Starlink, X, The Boring Company, and Tesla. President Trump described Musk’s service to the country as unparalleled in recent history and noted the innovative nature of Tesla’s factories compared to older facilities.
Musk confirmed in May his intention to lead Tesla for the next five years.
