Following a period of volatility linked to CEO Elon Musk’s commitment to a governmental role, Tesla’s stock experienced a significant resurgence in May, posting its strongest monthly gains since late 2024. This notable upturn reflects renewed investor confidence as Musk redirects his primary attention back to his technology and automotive ventures.
Musk’s Return and Market Reaction
Musk’s tenure leading the Department of Government Efficiency (DOGE) within the Trump Administration had a noticeable effect on investor perception. Wedbush Analyst Dan Ives highlighted this period as creating “brand damage” and a “black cloud” for Tesla. This translated into a challenging period for the company’s stock, which dipped to a low of around $222 per share in March. However, as April concluded and May progressed, the stock regained significant momentum, culminating in an almost 22% surge for the month. Despite this recovery, Tesla shares are still down over 14% for 2025 and considerably off their all-time high of $479.86 recorded in December 2024.
According to Ives, a substantial portion of the previous stock overhang, estimated at 20%, was directly linked to Musk’s engagement in Washington. With his departure from DOGE, this pressure has reportedly eased. Ives maintains a bullish outlook, setting a price target of $500 per share, which suggests a 44% upside from the recent closing price of $346.46.
Renewed Focus on Key Ventures
Musk himself confirmed his intensified focus on his core businesses via a post on X on May 24. He stated, “Back to spending 24/7 at work and sleeping in conference/server/factory rooms. I must be super focused on š¯•¸/xAI and Tesla (plus Starship launch next week), as we have critical technologies rolling out.” This commitment signifies a renewed drive into areas like artificial intelligence, social media, space exploration, and electric vehicles.
Upcoming Initiatives: Robotaxi and Starship
A highly anticipated development for Tesla is the planned rollout of its robotaxi service, slated for June 12. Musk recently shared updates on X regarding the progress, noting that Tesla has been successfully testing self-driving Model Y vehicles on public streets in Austin without incidents, reportedly a month ahead of schedule. The next phase includes the first self-delivery of a vehicle from factory to customer.
While enthusiasm surrounds Tesla’s entry into the robotaxi space, industry experts offer a tempered perspective. Ray Wang, founder of Constellation Research, acknowledges the benefit of competition but emphasizes that it’s still early days for widespread adoption. He pointed out existing players like Waymo and Zoox and cautioned that while Musk often makes ambitious predictions regarding timelines and scale, these don’t always materialize as quickly as initially projected. Tesla is expected to begin with a small fleet of 10 robotaxis, with plans to scale to 1,000.
Presidential Acknowledgment and Future Commitment
Elon Musk’s tenure at DOGE officially concluded, with President Donald Trump expressing his appreciation for Musk’s service. The President highlighted Musk’s unparalleled contributions to America, particularly his role in leading one of the world’s most innovative car companies.
Musk has publicly affirmed his dedication to Tesla, telling Bloomberg in May his intention to lead the company for at least the next five years. This long-term commitment, combined with the focus on critical technological advancements across his diverse business empire, including SpaceX, Starlink, X, and The Boring Company, signals a period of intensified innovation and strategic execution from the entrepreneur.
David Thompson earned his MBA from the Wharton School and spent five years managing multi-million-dollar portfolios at a leading asset management firm. He now applies that hands-on investment expertise to his writing, offering practical strategies on portfolio diversification, risk management, and long-term wealth building.