Tesla (TSLA) shares are in focus today following reports that its billionaire chief executive could be warming up to exit his role at the Department of Government Efficiency (DOGE).
According to NBC News, President Donald Trump has already told his Cabinet that Elon Musk could step back from his “official” duties in the coming months.
Musk himself said in a recent interview with Fox News that most of his work at DOGE will be completed in about 130 days. That timeline ends on May 29.
What Musk’s Exit from DOGE Could Mean for TSLA
Musk’s controversial role in the Trump administration has damaged Tesla’s reputation this year, leading to a significant sales decline in all of its key markets.
The multinational has grappled with protests, vandalism, and even acts of arson in recent months, which have resulted in a more than 30% decline in its share price in the year to date.
But all of that could reverse as Elon Musk leaves DOGE and returns to TSLA for good. His unwavering attention could reinvigorate innovation and operational momentum at the EV maker, potentially helping its stock price recover in the coming months.
Should You Buy Tesla Stock Despite Weak Q1 Deliveries?
Earlier this week, Tesla reported its worst quarterly deliveries in more than two years. But the EV maker will return to growth as Musk parts ways from DOGE, according to senior Wedbush analyst, Dan Ives. Ives has reiterated an “Outperform” rating on the EV stock. His $550 price target on Tesla shares translate to potential upside of more than 100% from current levels.
Wedbush is positive on Tesla stock as the automaker is relatively better positioned to navigate the 25% tariff the U.S. government has recently slapped on all imported vehicles.
What’s the Consensus Rating on Tesla in April?
While not as bullish as Dan Ives, a number of other analysts remain constructive on TSLA shares as well.
Wall Street currently has a consensus “Hold” rating on Tesla stock with the mean target of about $331 indicating potential upside of nearly 25% from here.
