Elon Musk Stuns Nation: Declares Shift Away from White House Duties to Save Tesla—Wall Street Erupts as Shares Soar 32% in One Month.

In the last 5 trading sessions, Tesla shares have risen by up to 20%.

Tesla shares have risen nearly 20% in the last 5 trading sessions and are still up about 32% within the past month. Many factors have contributed to Tesla’s upward momentum, including CEO Elon Musk’s renewed commitment to deeper involvement in the company as well as expectations of the possibility of cooling down in US-China trade tensions after the weekend negotiations.

Progress in trade talks with China

US-China trade tensions have eased significantly since the end of last week. Previously, the escalation of tariffs between the two countries in April caused China to respond with a 145% tariff, while imposing a 125% tariff on U.S. goods.

However, these tariffs have been significantly lowered. U.S. tariffs on Chinese goods have been reduced to 30 percent within a 90-day period, while China has reduced tariffs from 125 percent to 10 percent on U.S. goods.

Although Tesla mainly produces models sold in China at its factory in Shanghai (except for the Model S and X, which are low-volume and imported), the cooling of trade tensions is still a positive sign for the company.

Lower tariffs could help reduce the cost of importing components used in the U.S. manufacturing process, while reducing the risk of retaliatory measures that could affect Tesla’s operations in China.

Musk “turned around”

Elon Musk has recently been deeply involved in the Department of Government Effectiveness (DOGE) – a newly established agency that plays an important role in President Trump’s administration. However, Musk said he will significantly cut back on the role since May, spending only about 1–2 days per week, to focus more on Tesla.

Although Musk is no longer in charge full-time, his influence in the White House still seems to be huge. This is evident in the current visit of the US President to Saudi Arabia, where Musk appeared prominently next to Mr. Trump as one of the top members of the US delegation.

Musk’s companies continue to benefit from his close relationship with the President. Musk said his satellite internet company Starlink has been approved for use in maritime and aviation, while Saudi Arabian officials have also revealed that Tesla’s robotaxi may be deployed in the country.

The visit is likely to have strengthened investor confidence in Musk’s influence and reach out to policymakers, even as he becomes more deeply involved in Tesla. With Musk returning to the “driver’s seat”, Tesla shares are expected to rise to $1,500 per share.

Although President Trump has rolled back some tariffs over the past month, tariffs on imported cars have remained largely unchanged. Since the beginning of April, a 25% tariff has been applied to all imported passenger cars and light trucks, while the tax on some imported auto parts takes effect from May 3, 2025.

Tesla could be the net beneficiary of these new tariffs — or at least less affected than its rivals — though this may only be temporary. Tesla manufactures all of its vehicles sold in the U.S. at factories in California and Texas, so it is not affected by import tariffs. Meanwhile, rivals such as GM and Ford produce some electric models in Mexico – which could cause prices to rise even more. As a result, Tesla cars can become more competitive in price than competitors.