Tesla Inc (NASDAQ:TSLA) shares rebounded late morning on Wednesday following an unconfirmed report Elon Musk could soon leave his position in the Trump administration’s Department of Government Efficiency (DOGE).
The Politico report, which cited Trump insiders, claimed that the president remains pleased with Musk and DOGE, but that in recent days the two men had decided it would soon be time for Musk to return to his businesses.
Musk would stay on in a supporting role, the report said.
Tesla shares traded 3.6% higher late morning, reversing course from losses as much as 6.4% earlier in the session after Musk’s electric vehicle maker Tesla reported disappointing first quarter delivery numbers.
Musk's association with DOGE has been controversial, leading to protests and boycotts against Tesla. The company’s Q1 vehicle deliveries dropped by 13% from the year-ago period, attributed to softer demand amid public discontent with Musk's political engagements.