Tesla Rises $67 Billion as Elon Musk Adds $7.5 Billion to Wealth After Scaling Back DOGE, but Investors Stay Cautious

In a dramatic turn of events on Wall Street, Elon Musk witnessed his personal fortune increase by a staggering $7.5 billion in a single day, while Tesla’s market capitalization skyrocketed by $67 billion after he pledged to scale back his controversial political involvement. The sharp rise in stock price followed Musk’s announcement that he would reduce his responsibilities at the Department of Government Efficiency (DOGE) and reallocate his time toward leading Tesla.

Despite the stock market’s euphoric response, a number of analysts and investors remain unconvinced, voicing persistent concerns over Tesla’s long-term fundamentals and Musk’s unpredictable leadership style.

On Wednesday, Tesla shares surged 5% on the Nasdaq, reversing a months-long trend of underperformance that had battered investor confidence. This sudden rally was not driven by any significant improvement in Tesla’s earnings or operational metrics—on the contrary, the company had just released a Q1 report that fell short of both revenue and profit expectations.

Instead, the stock’s explosive rebound stemmed almost entirely from Musk’s pledge to “dedicate far more of my time to Tesla,” signaling a partial retreat from his political role in the Trump administration. Musk told investors during the earnings call, “I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so,” but emphasized that his primary focus moving forward would be Tesla.

The timing of this announcement was crucial. For months, investors had grown uneasy with Musk’s entanglement in national politics, particularly his leadership of DOGE, a government department created by President Trump to streamline federal operations.

Under Musk’s guidance, DOGE implemented aggressive cost-cutting measures, including thousands of layoffs across federal agencies, triggering nationwide protests and calls for corporate boycotts. The backlash hit Tesla hard. Sales declined in key markets, vandalism against Tesla showrooms spiked, and public sentiment toward the brand soured.

Adding fuel to the fire was Musk’s jaw-dropping $288 million donation to Trump’s reelection campaign, making him the largest political donor of the 2024 cycle and further blurring the lines between personal ambition and corporate responsibility.

As a result, Tesla’s stock plummeted nearly 34% since the beginning of 2025, far underperforming the broader market. The S&P 500, by contrast, fell a modest 8.4% over the same period. Analysts from major firms like Evercore ISI and Guggenheim had issued dire warnings about the consequences of Musk’s divided focus.

Chris McNally, a senior analyst at Evercore, described Musk’s tone during the earnings call as “Mea culpa Elon,” noting that the CEO’s comments represented a rare moment of contrition and acknowledgment of strategic missteps.

But if Musk expected his partial withdrawal from politics to earn universal praise, he may have underestimated the depth of investor frustration. Despite Wednesday’s rally, many large shareholders remain skeptical of Musk’s commitment and are demanding more concrete governance reforms.

“We don’t just want promises,” said one fund manager with substantial Tesla holdings. “We want the board to hold Musk accountable to his time commitments and ensure his loyalty lies with Tesla—not political theater.” Several shareholder groups are now reportedly pushing for formal guardrails that would limit Musk’s ability to engage in outside ventures while serving as Tesla CEO.

Adding to the optimism behind Tesla’s recent stock surge was Musk’s reaffirmation of major product roadmaps that had previously been delayed or mired in controversy. Among them is the long-promised robotaxi, a fully autonomous vehicle designed to revolutionize urban transport.

Musk confirmed that the robotaxi is slated for a launch event in June in Austin, Texas, and suggested that production of a new line of low-cost electric vehicles would commence in the first half of the year. These announcements offered a glimmer of hope to investors desperate for a return to innovation and execution.

Still, skepticism remains high. The robotaxi program has long been a source of contention among analysts, many of whom question the feasibility of a fully driverless fleet in the near term given current regulatory and technological limitations.

Meanwhile, Tesla faces mounting competition from Chinese automaker BYD, which has rapidly expanded its global footprint with affordable, high-performance electric vehicles. There are also growing fears that President Trump’s shifting tariff policies could ignite a new round of trade disputes, disrupting Tesla’s international supply chains.

Even with Wednesday’s rally, Tesla’s stock is still far from recovering its all-time highs. According to Benzinga’s Proprietary Edge Rankings, Tesla currently holds a momentum rating of 92.94% and a growth rating of 67.63%, which reflect strong short-term technical indicators but do not account for long-term uncertainties tied to governance and market saturation.

The Benzinga Growth metric, which evaluates historical earnings and revenue expansion across various time frames, suggests that while Tesla may be poised for a short-term rebound, its long-term trajectory remains precarious unless operational performance catches up with market expectations.

The irony is not lost on Wall Street: a company that just reported a 71% year-over-year profit drop and faces enormous reputational challenges saw its valuation swell by tens of billions in one day—all because its CEO promised to do his actual job. It’s a sign of how distorted investor sentiment has become in the Musk era, where the man’s words often carry more weight than the company’s financials.

Some Tesla bulls argue that Musk’s chaotic leadership style is a feature, not a bug. “Elon is the only person who could have brought Tesla to where it is today,” one longtime supporter tweeted. “He built this company from nothing, and if that means dealing with some distractions, so be it.”

But others aren’t so sure. With a multibillion-dollar company at stake and millions of shareholders relying on consistent performance, many believe it’s time for Tesla to evolve beyond one man’s charisma and begin institutionalizing its leadership.

As the dust settles, one thing is clear: the market’s short-term excitement masks deeper unresolved issues. Musk’s $7.5 billion gain and Tesla’s $67 billion bounce are, in many ways, a temporary reprieve—a reward for saying the right thing at the right time.

But unless those words translate into tangible operational improvements, board oversight, and product success, the euphoria could fade as quickly as it appeared. Investors will be watching closely over the coming months, not just for the robotaxi reveal or delivery numbers, but for proof that Musk is truly ready to prioritize Tesla over everything else.

Until then, the skepticism will linger. Words can move markets, but only action sustains them. Elon Musk has made a promise. Now he must prove he can keep it.