Elon Musk is heading back to Tesla full-time. But the billion-dollar question remains—can he reverse the damage already done?
Speaking to investors on Tuesday night, Musk confirmed he will reduce his involvement at the Department of Government Efficiency (DOGE) to just “one or two days a week,” pledging to dedicate the rest of his time to leading Tesla (TSLA). The move comes after months of mounting criticism over Musk’s high-profile political alignment with President Donald Trump, and his controversial presence in the administration.
Tesla’s brand image has taken a hit, with widespread protests outside showrooms and multiple acts of vandalism at company facilities. The first quarter of 2025 marked Tesla’s worst sales drop in history, leaving some analysts skeptical about how quickly consumer trust can be rebuilt—even with Musk’s return.
Shares of Tesla rose more than 5% on Wednesday in early trading, as markets reacted to Musk’s renewed focus. Yet the company’s earnings report told a less rosy story: a 71% plunge in net income due to collapsing global demand.
“Musk needs to stop being a politician and start being a CEO again,” said one institutional investor. “This is a branding crisis, not just a sales problem.”
Even longtime Tesla bull Dan Ives of Wedbush Securities has cooled. While he welcomed Musk’s reengagement at Tesla, Ives warned that demand may be permanently down 10%, driven not by EV competition, but by Musk’s polarizing political visibility.
For now, Tesla’s future may hinge less on innovation and more on reputation repair—something even Elon Musk may struggle to engineer.
