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The net worth of Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk witnessed a staggering increase of $7.5 billion on Wednesday as the shares experienced a 5% rally.

What Happened: Despite Tesla’s Q1 report revealing profits and revenues below consensus forecasts, the stock’s surge was largely attributed to Musk’s reaffirmed commitment to the company and boosted his net worth by $7.5 billion according to Forbes. Musk announced plans to dedicate more of his time to Tesla, starting next month. Musk stated, “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.” He further added, “Starting next month, I'll be allocating far more of my time to Tesla.”

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Investors and analysts, who had earlier voiced concerns about Musk’s significant time devoted to leading the Department of Government Efficiency (DOGE), welcomed this renewed commitment.

Analysts from Evercore ISI, led by Chris McNally, noted the “Mea culpa Elon” tone struck by Musk during the call. Meanwhile, Guggenheim analyst Ronald Jewsikow noted that the stock rally was also fueled by confirmed plans to launch a driverless “robotaxi” in June and the beginning of production for more affordable electric vehicles in the first half of the year.

Why It Matters: Despite the recent rally, Tesla's stock remains down nearly 34% year-to-date, significantly underperforming the S&P 500's 8.4% drop. The steep decline is mainly driven by ongoing uncertainty over Trump's shifting tariff policies and growing recession fears.

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Musk's leadership of DOGE, during which he implemented aggressive cost-cutting measures, including widespread federal layoffs, sparked major backlash against Tesla. The company saw a global sales decline amid growing protests and acts of vandalism. His $288 million donation to support Trump's election efforts—making him the largest political donor of the 2024 cycle—intensified the controversy even further.

Analysts had previously issued a “code red” warning for Tesla if Musk failed to reaffirm his commitment to the company. Investors now view his recent pledge to devote more time to Tesla, along with the anticipated launch of the “robotaxi” and more affordable electric vehicles, as encouraging developments by investors.

Tesla holds a momentum rating of 92.94% and a growth rating of 67.63%, according to Benzinga's Proprietary Edge Rankings. The Benzinga Growth metric evaluates a stock's historical earnings and revenue expansion across multiple timeframes, prioritizing both long-term trends and recent performance. For an in-depth report on more stocks and insights into growth opportunities, sign up for Benzinga Edge.

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This article Elon Musk's Wealth Skyrockets By Billions As Tesla Stock Rallies After Billionaire CEO Steps Back From DOGE originally appeared on Benzinga.com