Tesla shares rose over 5% on Apr. 2, after a Politico report speculated that Elon Musk may resign from his role at the Department of Government Efficiency (DOGE).

The White House dismissed the report as “garbage,” and Musk called it “fake” on X. Despite the denials, the stock rebounded from an earlier 6.4% drop caused by weak first-quarter delivery numbers.

The report, citing Trump administration insiders, claimed Musk and Donald Trump had agreed that Musk would refocus on his businesses.

NBC News added that Musk might leave after 130 days as a special government employee.

Tesla has struggled this year, with shares down over 31%, including a 36% first-quarter drop, its worst since 2022.

Musk’s government involvement has reportedly fueled protests and boycotts. Trump’s auto tariffs have also raised concerns about Tesla’s suppliers in Mexico and China.

Meanwhile, NYC Comptroller Brad Lander has urged legal action, alleging Tesla misrepresented Musk’s involvement, affecting NYC pension funds.

Musk also faces scrutiny over his political activities, including hosting a rally for a Republican judicial candidate in Wisconsin. Progressive groups argue his government role and political actions could harm Tesla’s interests.

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