TradingKey - After months of intense political engagement through the U.S. Department of Government Efficiency (DOGE), Tesla (TSLA) CEO Elon Musk has come to realize the risks of politicizing the Tesla brand.

On May 20, shares of Tesla rose 0.51% — bucking a broader market decline in which all three major U.S. equity indices fell — after Musk reaffirmed his commitment to reduce political involvement, refocus on his role as CEO, and update investors on Tesla’s latest technological and project developments.

Although Tesla’s stock has not yet fully recovered from its losses in 2025 — it remains down about 15% year-to-date — investor confidence is gradually returning. Tesla shares have surged more than 55% from their lows seen just before Trump’s reciprocal tariffs took effect in early April.

In addition to the easing of U.S.-China trade tensions, Musk’s return to business leadership has become a key factor behind Tesla’s resurgence.

During an interview on the 20th, Musk said he would significantly reduce his political donations, stating that he had already done enough in supporting efforts to cut federal government spending through DOGE.

During the 2024 U.S. presidential election, Musk spent over $250 million backing Donald Trump’s campaign. However, this massive investment did not yield positive results for Tesla, the electric vehicle manufacturer he leads.

Due to public backlash against Musk’s political activism, Tesla faced a wave of resistance from global consumers and investors in early 2025 — including a plummeting stock price, declining sales, and criticism of its earnings report.

Musk has now pledged to remain CEO of Tesla for the next five years, and to spend more time leading the company’s business growth.

Analysts at CFRA said Musk’s five-year commitment to Tesla is a positive development. Over the next five years, Tesla is expected to focus on advancing autonomous vehicles, robotics, and energy storage solutions.

Regarding Tesla’s sharp drop in sales in Europe, Musk acknowledged that the region has indeed been the weakest for Tesla. However, he emphasized that other markets remain strong, with overall sales performing well — and no significant decline expected moving forward.

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