Tesla share price rises over 4% amid reports of Elon Musk quitting DOGE | Stock Market News
Source: Live Mint
Tesla share price today: Tesla shares rose nearly 5 per cent on Wednesday after reports of its billionaire CEO leaving his role at the US government.
Tesla sales fell 13% in the first three months of the year, indicating that the company is failing to attract enough buyers.
At 1 am IST, Tesla share price was up 4.21 per cent at $279.76. Tesla stock price was initially falling more than 6 per cent following a report that it delivered fewer electric vehicles in the first three months of the year than it did in last year’s first quarter.
Why are Tesla shares rising today?
Tesla share price is rising today after Politico reported that Elon Musk, the company’s CEO, will step back from his role at the Department of Government Efficiency (DOGE) – a stunt that his seen his decreasing involvement at the carmaking firm.
Elon Musk has been more involved at his DOGE role and has seemingly not been able to focus on Tesla. His action at DOGE has also sparked worldwide protests, with protesters torching Tesla cars and storming Tesla showrooms.
Is Elon Musk resigning from DOGE?
According to a report by Politico citing three people close to the President, Donald Trump has revealed that Elon Musk is quitting DOGE to members of his Cabinet and other close contacts.
Donald Trump has tasked the Tesla and SpaceX CEO to lead efforts to cut government funding and dismantle various US agencies as a special government employee. Politico reported that both Trump and Musk decided in recent days that Musk will soon return to his businesses, despite the President being pleased with Musk’s work at the Department of Governement Efficiency or DOGE.
However, White House press secretary Karoline Leavitt called the report “garbage”.
“Elon Musk and President Trump have both *publicly* stated that Elon will depart from public service as a special government employee when his incredible work at DOGE is complete,” she wrote on X.
Tesla shares fall 13% in three months
Shares of Tesla have fallen 13 per cent in the first three months of the year, the Associated Press reported. The double-digit drop is likely due to a combination of factors, including its aging lineup, competition from rivals and a backlash from Musk’s embrace of right wing politics. It also is a warning that the company’s first-quarter earnings report later this month could disappoint investors.
Tesla reported deliveries of 336,681 globally in the January to March quarter. The figure was down from sales of 387,000 in the same period a year ago. The decline came despite deep discounts, zero financing and other incentives.
