Tesla gains 22% in May as Elon Musk ends time with Trump's DOGE

Tesla, the electric vehicle manufacturer led by Elon Musk, experienced a significant surge in its stock value by over 22% throughout May, despite ongoing challenges with car sales in key markets like China and Europe. Musk has declared a renewed commitment to his business ventures, distancing himself from political distractions. Even though Tesla shares have rebounded this month, they remain down 14% since the beginning of the year. In a broader context, Apple has faced a 19% decline this year, marking it as the weakest performer among major tech companies. The stock’s rise coincided with President Donald Trump announcing the conclusion of Musk's role as a "special government employee" at the Department of Government Efficiency. Trump expressed his continued support for Musk on social media, noting, "This will be his last day, but not really, because he will always be with us, helping all the way. Elon is terrific!" Musk indicated during a recent earnings call that his involvement with DOGE would decrease significantly by the end of May, although he plans to dedicate one or two days each week to government duties until Trump's presidency concludes. He also intends to maintain an office at the White House, affirming his role as a friend and advisor to the president. According to a report from The New York Times, Musk's personal life has faced turmoil, compounded by substance use that was described as more than occasional during his campaign support for Trump last year. It remains uncertain if these issues persisted during his time in the White House, especially given his obligations to manage Tesla, SpaceX, and his AI firm, xAI. Tesla has been under scrutiny as its sales in Europe fell by nearly 50% year-over-year in April, and in China, sales dropped approximately 25% in the first weeks of the current quarter. Protests against Musk's association with Trump and his endorsement of extremist political parties in Germany have added to the pressure. Recently, pension fund leaders urged Tesla's board to hold Musk accountable, insisting he commit to a minimum of 40 hours a week on Tesla operations to address what they termed a "crisis." Despite these challenges, Musk and Tesla are focusing on future prospects in autonomous driving, robotics, and artificial intelligence. Bloomberg reported that Tesla is gearing up to launch its long-awaited autonomous ride-hailing service in Austin, Texas, potentially starting on June 12th. Although the start date remains unconfirmed, Tesla has pledged to unveil this service by the end of June. Musk shared plans for a small fleet of Model Y vehicles equipped with advanced Full Self-Driving technology, a service that could position Tesla favorably against competitors like Waymo, which recently celebrated over 10 million paid driverless rides. Additionally, Tesla is strategically positioned to manage tariffs better than many U.S. automakers, thanks to its two major assembly plants in Fremont, California, and Austin, Texas, which utilize more domestic parts compared to many rivals.