Elon Musk, White House Deny Reports Of Tesla CEO's Early Exit From Trump Team

Tesla Inc. TSLA CEO Elon Musk has denied rumors of his premature departure from the Donald Trump administration. This comes despite his recent unpopularity influencing a state supreme court race.

What Happened: Musk dismissed circulating reports that he was preparing to leave his role as head of the Department of Government Efficiency (DOGE) in the Trump administration.

Meanwhile, the White House Press Secretary Karoline Leavitt called the reports “garbage” while confirming that Musk would “depart from public service as a special government employee when his incredible work… is complete”.

Musk responded to the post by Leavitt and wrote, “Yeah, fake news”.

Musk expressed confidence in a recent interview at Fox News with Bret Baier that he would achieve most of his goal of cutting $1 trillion in federal spending by the end of his 130 days. However, in another Fox Business interview when host, Larry Kudlow asked if he is going to continue another year, Musk answered, “Yeah, I think so.”

Why It Matters: Speculation about Musk returning to the private sector boosted shares of Tesla. Despite an initial 6% drop due to weak Q1 deliveries, Tesla’s stock unexpectedly rebounded by Wednesday afternoon.

The reports of Musk’s exit came on the heels of the Republican candidate, Brad Schimel, losing the Wisconsin Supreme Court election to Democrat candidate, Susan Crawford.

Elon Musk spent over $25 million on a Wisconsin judicial race, claiming it was crucial for civilization's future. He used a strategy from last year's election, offering voters $100 to sign a petition and personally handing out $1 million checks to some signatories. Anticipating defeat, he acknowledged last month that unseating a liberal candidate would be challenging due to higher Democratic voter enthusiasm.

However, his blunt approach to mass layoffs from the government workforce, resulting in nearly 200,000 employees being fired, earmarked for termination, or accepting buyouts, has stirred unease across the U.S.

Republican lawmakers are facing backlash at chaotic town halls, Doge’s initiatives are facing lawsuits, Tesla dealerships have been vandalized, and a nationwide protest against Doge and Trump’s agenda is planned for Saturday.

Tesla climbed 5.33% on Wednesday to close at $282.76 on Wednesday.