Tesla Inc. (NASDAQ:TSLA) shares jumped over 2.9% in overnight trading to $367.32 following CEO Elon Musk‘s announcement that his role as Special Government Employee leading the Department of Government Efficiency (DOGE) has concluded.
What Happened: The electric vehicle maker closed regular trading down 1.65% at $356.90 on Tuesday before the announcement sparked investor optimism about Musk’s renewed focus on Tesla operations.
“As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Donald Trump for the opportunity to reduce wasteful spending,” Musk posted on social media. He added that “The DOGE mission will only strengthen over time as it becomes a way of life throughout the government.”
Musk’s departure from DOGE comes after mounting criticism over potential conflicts of interest and Tesla’s declining sales performance. The billionaire admitted in a recent interview that he “probably did spend a bit too much time on politics” and described his government involvement as a “time allocation issue.”
During his tenure, DOGE claimed $160 billion in government savings through contract terminations and IT modernization efforts.
Why It Matters: Tesla has faced significant challenges as Musk’s political activities intensified. Sales figures declined across multiple regions, attributed partly to consumer backlash over his political endorsements and close Trump administration ties.
The renewed commitment to Tesla operations has energized Wall Street analysts. Wedbush Securities‘ Dan Ives recently set a $500 price target for TSLA shares, projecting a potential $2 trillion market capitalization for the company.
Musk’s DOGE exit coincides with his criticism of Trump’s $3.8 trillion spending package, which he called disappointing and said “undermines the work that the DOGE team is doing.” The Congressional Budget Office estimates the legislation could add up to $5.7 trillion to federal debt by 2034.
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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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