Elon Musk, the CEO of Tesla, announced on Wednesday that his tenure as a special government employee with the Trump administration has concluded. This exit will enable him to redirect his focus towards Tesla and its operations.
In a post on X, Musk expressed gratitude for the opportunity to help establish the Department of Government Efficiency (DOGE) during his legally mandated 130-day term.
Musk’s exit from the Trump administration is seen as a positive shift for investors in his various ventures, particularly Tesla, which has encountered criticism regarding Musk’s political engagement amidst a decrease in electric vehicle demand over the past year.
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Dan Ives, managing director and head of global technology research at Wedbush Securities, commented that Musk’s departure from the White House is “music to the ears of Tesla shareholders,” as it allows him to concentrate on Tesla and its autonomous goals.
Ives noted that Musk’s departure was expected, partly due to Musk expressing criticism of Trump’s spending initiatives and tariffs. He emphasized that the brand challenges Tesla faced as a result of political controversies are now behind them.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 358.43 | +1.53 | +0.43% |
Ives reaffirmed his belief that Tesla remains undervalued within the AI sector and noted that the path to realizing the company’s autonomous vehicle and robotic vision would take time.
Ives continued, highlighting that while challenges are ahead, Tesla’s extensive global reach provides a strong position to dominate the autonomous market and potentially license its technology to international automotive companies.
The timing of Musk’s resignation aligns with increased pressure from shareholders to prioritize his responsibilities at Tesla.
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A group of Tesla shareholders, representing state treasurers and pension fund managers, addressed a letter to Robyn Denholm, chair of Tesla’s board. They urged the board to enforce that Musk dedicate a minimum of 40 hours each week to Tesla.
The letter expressed concern that Musk’s engagements outside the company appeared to detract from his management responsibilities at Tesla, which would be expected of any CEO in a publicly traded firm.
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The shareholders called for any new compensation package for Musk to include a stipulation for a weekly commitment of 40 hours to managing the company. They emphasized the need for Tesla to have leadership aligned with the scale of its challenges, particularly in light of strategic uncertainties and heightened competition in the market.
Furthermore, the letter requested the establishment of a CEO succession plan and the appointment of at least one independent director to the board, seeking to enhance corporate governance at Tesla.
