Tesla Inc. Stock Jumped 22% In May Despite Sales Slump And Musk’s Political Exit
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Tesla, Inc. (TSLA) closed on Friday at $346.46, down 3.34% for the day, slipping to $345.52 after hours.
Tesla, Inc. (TSLA)
Despite this drop, the stock surged over 22% for the month of May. This rebound came even as Tesla’s car sales in Europe halved year over year in April, and China sales slid 25% in the first eight weeks of the quarter.
Elon Musk’s decision to end his work as head of President Trump’s Department of Government Efficiency (DOGE) played a major role in the rally. Musk promised to devote more time to Tesla and his other companies, a move welcomed by investors who have voiced concerns about his divided attention.
Musk’s Shift Back to Business
On the latest Tesla earnings call, Musk said he would cut his government work to “a day or two per week” and refocus on his company. His White House role as a “special government employee” officially ended in May, with Trump praising Musk on Truth Social: “Elon is terrific!”
However, Musk intends to remain involved as an informal advisor, keeping his White House office and offering help when needed. This shift back to business has been described by analysts as a “different Musk,” signaling a return to a serious focus on Tesla’s core operations.
🚨BREAKING: Elon Musk VOWS to Stay by Trump’s Side as ‘Friend and Advisor’ Despite Quitting Government Role!
— Fan - Pam Bondi (@PamBondiNewsX) May 31, 2025
Do you support Musk’s decision to remain a close advisor to Trump?
YES – Musk’s loyalty is admirable!
NO – He should distance himself from Trump! pic.twitter.com/uAs0svCOiO
Autonomous Ride-Hailing Service Launch
A major upcoming catalyst for Tesla is the long-awaited launch of its robotaxi service. Bloomberg reported that Tesla will begin offering fully autonomous paid rides in Austin, Texas, on June 12, using a small fleet of Model Y vehicles equipped with its latest Full Self Driving hardware and software.
🚨 June 12 is the BIG day!@cyberbulls1 breaks down upcoming Tesla’s Robotaxi rollout!
— Herbert Ong (@herbertong) May 31, 2025
From limited invite-only rides to full public launch, excitement is building. Gradual access, public testing, and a likely media storm as Tesla hits this huge milestone. 🔥
The Bulls: 🐂… pic.twitter.com/azBRpqS0gj
Musk has promised a robotaxi for years, but competitors like Alphabet’s Waymo have pulled ahead, surpassing 10 million paid, driverless rides. Analysts are watching to see if Tesla can make up lost ground with this Austin launch.
Performance Snapshot
Tesla’s year-to-date return stands at 14.21%, ahead of the S&P 500’s 0.51%. Over the past year, Tesla gained 93.78%, compared to the S&P’s 12.92%. However, its three-year return of 36.83% lags the S&P’s 42.17%, while its five-year return of 522.38% far outpaces the S&P’s 94.19%.
Investors now look ahead to Tesla’s next earnings report, scheduled for July 23, 2025, to see if Musk’s renewed focus can deliver meaningful business improvements.
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