Wedbush Securities analyst Dan Ives celebrated Elon Musk‘s departure from his Trump administration role, describing the move as positive for shareholders seeking renewed leadership focus on electric vehicle operations and autonomous driving technology.
What Happened: Ives posted on X that Musk “officially left the Trump White House last night” and called it “music to the ears of Tesla shareholders with Musk now laser focused on Tesla and the autonomous vision ahead.” The analyst described it as “a new chapter ahead for Tesla and Musk.”
Musk announced his departure from the Department of Government Efficiency on social media, stating, “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.”
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Tesla Inc. TSLA shares gained 2.9% in overnight trading to $367.32 following Musk’s announcement after closing regular trading down 1.65% at $356.90.
Tesla has faced challenges such as declining sales figures in multiple regions and consumer backlash tied to Elon Musk’s political activities.
Why It Matters: Musk acknowledged 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 DOGE tenure, the department claimed $160 billion in government savings through contract terminations and IT modernization efforts.
Musk’s return to full-time focus on business operations addresses investor concerns about divided attention affecting company performance. Ives recently raised his Tesla price target to $400 from $300, projecting that the company's focus on AI and autonomous driving could add $1 trillion in valuation, potentially boosting the stock by 20% to 30%.
Cathie Wood‘s Ark Invest sold $5.6 million worth of shares on Wednesday, continuing recent divestment activity despite Musk’s renewed commitment to the company.
Price Action: In premarket trading on Thursday, Tesla Inc.’s stock rose 1.88% to $363.60, according to data from Benzinga Pro.
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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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