Tesla (TSLA) shares extended gains further on Thursday, May 29 after the company’s chief executive, Elon Musk, announced his departure from his top role at the Department of Government Efficiency (DOGE).
The billionaire hopes that the “DOGE mission will only strengthen over time” and eventually become “a way of life” for the U.S. government, according to his latest X post.
Including today’s gain, TSLA stock is up well over 60% versus its year-to-date low.
What Musk’s Departure From DOGE Means for Tesla Stock
Musk’s announcement could prove a major tailwind for Tesla stock in the weeks ahead as investors believe stepping away from the government role will enable him to refocus on the EV maker.
Musk’s involvement in politics sparked controversy and protests that reportedly damaged TSLA’s reputation this year.
Amidst ongoing sales decline and plans of launching robotaxi operations next month, his renewed focus on the Nasdaq-listed firm is expected to boost investor confidence.
All in all, the billionaire’s departure from Prseident Donald Trump’s administration signals a shift away from political distractions, which analysts believe could help Tesla regain momentum in the electric vehicle market.
Wedbush Reiterates Uber-Bullish View on TSLA Shares
Wedbush analyst Dan Ives reiterated his “Outperform” rating on the EV stock following Musk’s announcement today, saying it offers another big reasons to remain long TSLA.
“It’s music to the ears of Tesla shareholders with Elon Musk now laser focused on Tesla and the autonomous vision ahead,” he told clients in a research note on Thursday.
Ives expects the company’s upcoming robotaxi services and its work on humanoid robots to push Tesla stock up significantly to $500 over the next 12 months.
His price target indicated potential upside of roughly 40% from current levels.
Tesla’s Sales Weakness May Still Be Too Hard to Ignore
While Tesla’s autonomous vision is exciting, other Wall Street analysts continue to see EVs as its core business – and, therefore, find weakness on that front a bit too hard to ignore.
According to Barchart, the consensus rating on Tesla shares currently sits at “Hold” with the mean target of about $292 indicating potential downside of more than 15% from here.
