Tesla’s shares rose about 5% in the preliminary negotiation on Wednesday, following the decision of billionaire Ilon Musk that he would devote less time to the US government in May, rejuvenating the hopes that the billionaire will be more likely to

Musk’s involvement in the Doge Service has sparked strong reactions to the public and politics, leading to protests and vandalism at Tesla’s exhibition venues from time to time.

Musk recognized problems with the company but disrupted the concerns that the brand’s damage is responsible for the sharp 25% drop in Tesla’s car sales in the first quarter and a 71% dip in total net profits.

“Investors can breathe and be temporarily relieved as Ilon Musk said he would leave Doge next month, potentially relaxing part of the pressure on the image of the Tesla brand,” said Chris Beauchamp, an analyst on the IG online trading platform.

“After a 50%drop in the stock price, investors tend to have a different view and with Musk now turning, these elements can be neglected in the hope that a helping hand will spread again.”

“Investors seem willing to overlook the reduction in car sales at present, instead of choosing to focus on the biggest prize: an autonomous future,” said Matt Britzman, Hargreaves Lansdown’s senior shares.

Tesla’s data in the first quarter of 2025 were disappointing, including 20% ​​in the automotive revenue and 71% of net revenue.