Tesla shares have surged more than 20 percent after CEO Elon Musk announced plans to devote much more time to the company starting in May.

The news, shared during Tesla’s first-quarter earnings call on Tuesday, amounted to an adrenaline shot for shareholders who have been irritated by Musk’s divided attention after spending the last three months with the Trump administration. 

At Friday’s close Tesla stock was trading as high as $284.96 per share, up 20% from Tuesday’s closing price of $237.97.

Some analysts are keeping their fingers crossed that this could be the start of an enduring recovery for the company. 

Since Trump’s inauguration, the Tesla CEO has made waves as the unofficial head of the Department of Government Efficiency (DOGE), a role which has politicized Tesla’s brand among consumers.

Given DOGE’s contentious work, including initiating sweeping federal layoffs, investors this year have grown worried about damage to the brand. 

‘Starting next month, I will be allocating far more of my time to Tesla,’ Musk said during the earnings call, adding that ‘the major work of establishing the Department of Government Efficiency’ was done.

He said he would continue to spend a day or two a week on government matters, ‘as long as it is useful’ and the president wants him to do so.

Since Trump’s inauguration, the Tesla CEO has made waves as the unofficial head of DOGE, a role which has politicized Tesla’s brand among consumers

President Donald Trump and Tesla CEO Elon Musk speak to the press as they stand next to a Tesla Cybertruck on the South Portico of the White House last month in Washington, DC

Tesla shares surged more than 20 percent after CEO Elon Musk announced plans to devote much more time to the company starting in May

Prior to Tuesday, Tesla stock was down 44% this year, and its first-quarter sales came in way under expectations. 

Musk himself said he was leading his companies ‘with great difficulty’ during his time with DOGE. 

Investors had their reason. Tesla boycotts and protests grew in the first quarter, while weak deliveries and sales data in the US and abroad led to a dismal earnings report on Tuesday.

‘It’s going to be viewed historically as probably the most important conference call Musk has ever had,’ Wedbush Securities analyst Dan Ives said about the DOGE step-back announcement, speaking to Bloomberg TV. 

Though a long-time Tesla bull, Ives was a loud critic of Musk’s political ambitions in the first quarter.

After getting a boost from Musk’s DOGE departure, the stock saw a fresh catalyst for more gains on Friday.

Even after falling nearly 50% from its December highs, Tesla’s stock is still very richly valued based on the one yardstick that really matters in the long run: its earnings.

At 110 times its expected per share earnings this year, the stock is valued more than 25 times higher than General Motors. The average stock on in the S&P 500 index trades at less than 20 times earnings.

Given DOGE’s contentious work, including initiating sweeping federal layoffs, investors year have grown worried about damage to the brand but Musk has announced he’s stepping back

Musk’s imminent departure raises questions about the future of DOGE, although the White House insists its work will continue

That leaves Tesla little margin for error if something goes wrong.

Trump has regularly praised tech billionaire Elon Musk’s Department of Government Efficiency for its role in cutting the size of the federal workforce and halting thousands of government programs and contracts.

In just three months, entire government agencies have been dismantled and hundreds of thousands of workers from the 2.3 million-strong federal workforce have been fired or have agreed to take buyouts. 

Musk said he will soon be stepping back with his 130-day mandate as a special government employee set to expire at the end of May. 

His imminent departure raises questions about the future of DOGE, although the White House insists its work will continue.

DOGE was created by an executive order Trump signed on his first day in office on January 20 to “modernize federal technology and software to maximize governmental efficiency and productivity.”

Despite its name, DOGE is not a government department created by an act of Congress. It is a temporary organization that took over an existing unit within the White House, the U.S. Digital Service.

Tesla CEO Elon Musk, accompanied by President Donald Trump and his son X Musk, speaks during an executive order signing in the Oval Office at the White House in February

 A man sprays paint graffiti against Elon Musk’s Department of Government Efficiency (DOGE) on a Tesla showroom in New York earlier this week 

Tesla boycotts and protests grew in the first quarter, while weak deliveries and sales data in the US and abroad led to a dismal earnings report on Tuesday

People hold placards during a Tesla Takedown protest against billionaire Elon Musk, outside of a Tesla car showroom in central London earlier this month

There have been protests outside of Tesla showrooms across the globe

Its mandate, due to expire on July 4, 2026, now far exceeds the confines of the language of the initial executive order as its staffers sweep through government departments looking for spending and staff cuts.

Musk, the world’s richest person, does not draw a government salary, the White House has said.

Critics say DOGE has been given extraordinary power by Trump and that it operates with no oversight and in secret, although Musk maintains it is transparent.

On Friday, Tesla shares grew further after the US Department of Transportation announced looser rules on autonomous vehicles, with self-driving cars used for testing to be exempt from certain safety procedures. 

The change was presented as a way to help keep American firms competitive against a growing Chinese rivalry.

‘This Administration understands that we’re in a race with China to out-innovate, and the stakes couldn’t be higher,’ U.S. Secretary of Transportation Sean Duffy said in a statement. 

‘As part of DOT’s innovation agenda, our new framework will slash red tape and move us closer to a single national standard that spurs innovation and prioritizes safety.’