Key Takeaways:
- Tesla shares rose over 2.15% after Musk confirmed his exit from the DOGE role.
- Investors welcomed the news, viewing it as a sign of Musk refocusing on Tesla.
- Musk criticized federal inefficiencies and plans to scale back political involvement.
Tesla shares surged over 2.15% in overnight trading to $364 after CEO Elon Musk revealed he is stepping down from his role as Special Government Employee overseeing the Department of Government Efficiency (DOGE) under the Trump administration.
The move follows a 1.65% decline in Tesla stock during regular trading hours on Tuesday, closing at $356.90, according to data from Google Finance.
Musk’s announcement, shared via his social media platform X, appeared to reassure investors concerned about his growing political involvement and its impact on Tesla’s core business.
“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President @realDonaldTrump for the opportunity to reduce wasteful spending,” Musk posted.
DOGE to Continues its Mission
Musk said that while his own role has concluded, the mission of DOGE will continue within government operations.
The White House confirmed Musk’s departure was already underway as of Wednesday evening.
The billionaire’s brief foray into federal reform had focused on streamlining bureaucracy, but insiders say his efforts were often met with internal resistance.
Throughout the past week, Musk has been increasingly vocal about his dissatisfaction with Washington.
He openly criticized Trump’s tax plan as bloated and counterproductive, and described the federal government’s internal inefficiencies as worse than expected.
In an interview with the Washington Post, Musk admitted, “It’s an uphill battle trying to improve things in DC.” He added that DOGE had become a scapegoat for failures within the administration.
Behind the scenes, Musk reportedly clashed with key White House officials and publicly derided trade adviser Peter Navarro over tariffs.
His growing frustration extended beyond domestic politics; Musk also reportedly opposed a deal between OpenAI and Abu Dhabi, objecting to his own AI company’s exclusion.
Further complicating his political entanglements, Musk had invested $25 million in a failed Wisconsin judicial campaign and pledged another $100 million to pro-Trump groups — money that has yet to materialize, according to The New York Times.
Despite the controversies, DOGE has managed to shrink the federal civilian workforce by 12% through buyouts, early retirements, and restructuring — a feat Musk frequently touted.
Tesla Investors Ask Musk to Focus on EV Company
Some Tesla investors had urged Musk to cut back on his political involvement and focus on leading the EV company.
His exit from DOGE may mark a shift back to Tesla-centric priorities, with markets responding positively.
Musk, who spent nearly $300 million supporting Republican campaigns last year, said at a recent economic forum that he plans to reduce his political contributions. “I think I’ve done enough,” he said.
As reported, the Securities and Exchange Commission (SEC) has agreed to allow DOGE representatives access to its internal systems and data, effectively treating them as staff for integration and network purposes.
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