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Tesla's stock turned positive Wednesday as a report suggested that CEO Elon Musk might be stepping back from some of his government work.
Tesla (TSLA), shares finished the day up by 5.3%, to close at around $283. This was a return to the green after the latest quarterly delivery news had pulled them down in the morning trading. A report by Politico claims that President Trump told people Musk would soon “return his businesses and play a supporting role in politics”.
Politico's report cited "three Trump insiders who were granted anonymity to describe the evolving relationship."
In an afternoon message on the social network X, White House spokeswoman Karoline Leavitt called the story "garbage," adding that both Musk and Trump have said Musk will "depart from public service as a special government employee when his incredible work at DOGE is complete." Musk in his own message said the story was "fake news."
Musk has been a particularly active member of Trump's second administration, leading the efforts of the Department of Government Efficiency and, more recently, pouring millions of dollars into an ultimately unsuccessful effort to elect a Republican candidate to Wisconsin's Supreme Court.
Musk’s close, constant work with Trump that included the president promoting Tesla’s vehicles at White House had its share of critics, including those who were partisan but also investors worried that he didn’t spend enough time managing Tesla during a challenging period for the auto business, and signs that its business was slowing.
Last week Musk said his xAI artificial-intelligence company had acquired the social-media network X that he also owns.
Tesla's shares are down about 30% this year.
This article has been updated with the Leavitt & Musk statements, and updated share price information.
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Politico. "Trump Tells Inner Circle That Musk Will Leave Soon."
X. @PressSec, April 2, 2025.
X. @elonmusk, April 2, 2025.
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