Tesla’s stock experienced a remarkable surge of nearly 22% in May, marking the company’s most successful month since November 2024. This positive shift coincided with the return of CEO Elon Musk, who was greeted warmly by investors following a tumultuous period during his leadership of the Department of Government Efficiency (DOGE).
Musk’s time at DOGE was challenging, characterized by significant public criticism and personal attacks on Tesla vehicle owners. Analysts noted that his involvement in the Trump Administration and DOGE adversely affected Tesla’s brand image. Wedbush Analyst Dan Ives commented, “Elon’s role in the Trump Administration and DOGE created brand damage and a black cloud over the story.” The stock plunged to around $222 per share in March but began to regain ground in late April. Despite this recent uptick, Tesla shares remain approximately 14% lower for 2025 and are still below their peak of $479.86 from December 2024, according to Dow Jones Market Data Group.
WHAT’S NEXT FOR ELON MUSK AFTER DOGE EXIT
Analyst Dan Ives further elaborated, “We believe that there was a 20% overhang on the stock tied to Musk in the White House, which is now alleviated as Musk departs the 202 area code during one of the most important technology periods for Tesla.” His target price for Tesla shares stands at $500, suggesting a potential increase of 44% from Friday’s closing price of $346.46.
Musk excitedly shared his plans on X on May 24, stating, “Back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on 𝕏/xAI and Tesla (plus the Starship launch next week), as we have critical technologies rolling out.”
MUSK CONFIDENT DOGE CAN STILL SAVE $1 TRILLION
Looking ahead, Tesla’s much-anticipated robotaxi rollout is scheduled for June 12. Musk reported, “For the past several days, Tesla has been testing self-driving Model Y cars (no one in the driver’s seat) on Austin public streets with no incidents. A month ahead of schedule. Next month, the first self-delivery from factory to customer.”
Despite the excitement surrounding the rollout, Constellation Research founder Ray Wang cautioned that it is still early in the robotaxi market. “I am excited there is going to be some competition in the robotaxi market. You have Waymo in a lot of places, you got Zoosk in Las Vegas and now, of course, Tesla is coming into Austin and parts of Texas as well,” he explained during an interview. Wang noted Musk’s prediction of starting with 10 vehicles and scaling up to 1,000, highlighting the CEO’s tendency to set ambitious timelines.
Musk’s role at DOGE officially ended on Friday, with President Donald Trump expressing gratitude for Musk’s contributions during his time there. As Musk shifts his focus back to his business portfolio, which includes Tesla, SpaceX, Starlink, and The Boring Company, he remains influential in the tech industry.
TRUMP PRAISES ELON MUSK AND HIS BUSINESS EMPIRE
In an address from the Oval Office, Trump remarked, “Elon’s service to America has been without comparison in modern history. He’s already running one of the most innovative car companies in the world. If you look at his factories and compare them with some of the old factories we have, it’s a big difference.” Musk has indicated to Bloomberg that he intends to continue leading Tesla for the next five years.
