Having secured significant financial backing from Elon Musk during his election campaign, Donald Trump has given him the power to clean up government spending since his return to the White House. Musk’s activity in this capacity has irritated many, and rumors of his impending departure from this post have fueled Tesla’s stock price.
Image source: Unsplash, Rene DeAnda
Let us recall that the shares of Tesla, the company headed by Musk, form the basis of his wealth, while their market value reacts vividly to all events related to the billionaire’s personality. Tesla’s essentially disastrous preliminary quarterly report the day before caused the company’s share price to fall by five percent, but Politico managed to issue an “antidote” to this information, reporting on Musk’s intentions to leave the DOGE department in the coming months in connection with the achievement of the main goals set for this young department.
In any case, the rumors have already played to the advantage of Tesla shares, whose price has risen by 5% and recovered recent losses after unfavorable quarterly statistics. According to the logic of investors, Musk’s return to managing his business after being distracted by political activity should have a positive effect on the state of affairs at Tesla. Especially since some of Musk’s steps in the political arena directly harmed the carmaker’s business.