Tesla stock surged in after-hours trading on May 29, 2025, gaining over 2.15% to reach $364. The rally comes after Tesla closed the regular session 1.65% lower at $356.90. Elon Musk’s exit from DOGE and the new Tesla Model Y announcement boosted investor sentiment.
Musk stepped down from his position as Special Government Employee at the Department of Government Efficiency (DOGE). It is a post that Tesla CEO held under the current US President Donald Trump.
Elon Musk revealed the news of his quitting DOGE through an X post:
The update appeared to ease shareholder concerns over Musk’s entanglements in politics, which some feared were distracting him from Tesla’s core business. The move raises questions about reasons behind the exit, with many wondering that it may signal a major fallout between Trump and Musk instead.
Also Read: The Musk-Trump Takeover: Tesla CEO's Unchecked Power Over US
In a second X post that fueled further investor optimism, Musk shared that Tesla has begun real-world testing of fully self-driving Model Y vehicles. He mentioned that the testing is currently ongoing on public streets in Austin, Texas.
The accelerated timeline for autonomous deliveries bolstered confidence. It is being considered as a future growth catalyst for Tesla’s Full Self-Driving (FSD) technology roadmap.
Tesla shares have delivered a stellar 102.57% return over the past 12 months. It is one of the best-performing stocks in the large-cap tech segment. However, on a year-to-date basis, Tesla stock has dipped over 6%, falling from the $400 level earlier this year.
Tesla stock chart as of 6.15 PM shows that the pre-opening price stands at $364.17:
Despite short-term volatility, investors appeared encouraged by the shift in Tesla CEO’s focus. Musk’s political departure and bold steps in autonomous driving seem to have reassured Wall Street that Tesla is back on mission. The uptrend is a sign that investors expect the company to be building the future of mobility, one self-driving car at a time.
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