By Arinze Uzo
Business News Correspondent
Tesla shares surged more than 12% this week, closing at $346.81, after CEO Elon Musk announced he would reduce his political engagement and refocus his attention on the company’s core electric vehicle operations. The move appears to have reassured investors and analysts who had grown increasingly concerned about Musk’s high-profile political activity overshadowing Tesla’s business performance and long-term strategy.
Musk, known for his outspoken political commentary and involvement in divisive issues, signaled during a recent investor call that he would “dial back” on political spending and public political endorsements. Instead, he pledged to prioritize scaling Tesla’s production, accelerating innovation, and expanding market reach—particularly in the face of growing competition in the global EV sector.
Wall Street responded quickly. Analysts from major firms, including Morgan Stanley and Wedbush, praised Musk’s shift in tone, calling it a “strategic reset” that could help stabilize the company’s public image and restore shareholder confidence. The stock’s sharp upward movement also comes at a crucial time, as the broader EV industry faces regulatory uncertainty, with the U.S. House recently passing legislation aimed at rolling back tax credits for electric vehicles.
Investors welcomed the reprioritization, seeing it as a signal that Tesla would reassert its leadership in EV innovation rather than be distracted by political controversies. This renewed focus, combined with recent advancements in battery technology and promising delivery numbers, has reignited optimism about Tesla’s trajectory in 2025 and beyond.
Tesla shares have rebounded significantly, rising 12.19% to $346.81, following CEO Elon Musk’s announcement to reduce his political involvement and refocus on the company’s core electric vehicle business. This shift comes amid recent legislative challenges, including the U.S. House’s passage of a tax bill that repeals EV purchase tax credits and imposes higher registration fees for EVs and hybrids.
Musk’s commitment to scaling back political activities and concentrating on Tesla’s operations has been well-received by investors, contributing to the stock’s recent gains.
