TLDR
- Tesla CEO Elon Musk announces driverless Model Y testing in Austin, with first delivery targeted for June, a month ahead of schedule
- Tesla stock jumps 2.9% in overnight trading after Musk ends his government role with DOGE
- Musk admits spending too much time on politics, describing it as a “time allocation issue” for Tesla
- Bloomberg reports Tesla aims to launch robotaxi service in Austin on June 12
- Tesla faces declining sales worldwide due to competition and backlash over Musk’s political activities
Tesla stock gained 2.9% in overnight trading following CEO Elon Musk’s announcement that he’s ending his role with the Department of Government Efficiency. The electric vehicle maker closed regular trading down 1.65% at $356.90 before jumping to $367.32 after hours.
Musk posted on social media that his time as Special Government Employee has concluded. He thanked President Donald Trump for the opportunity to reduce wasteful spending through DOGE.
The billionaire admitted in recent interviews that he “probably did spend a bit too much time on politics.” He described his government involvement as a “time allocation issue” for Tesla operations.
🚨BREAKING: Elon Musk has just announced that his time as a Special Government Employee has officially come to an end.
Thank You Elon Musk!
"As my scheduled time as a Special Government Employee comes to an end, I would like to thank President Trump for the opportunity to… pic.twitter.com/RjcYMGwbC6
— AJ Huber (@Huberton) May 29, 2025
Tesla has faced declining sales across multiple regions during Musk’s political activities. The company has dealt with rising competition and consumer backlash over his political endorsements.
Musk’s departure from government comes as Tesla advances its robotaxi plans. The CEO announced Thursday that Tesla has been testing driverless Model Y cars in Austin, Texas.
The tests have proceeded without any incidents, according to Musk. He said the first driverless Model Y delivery is scheduled for June.
This timeline puts Tesla a month ahead of its original schedule. Musk had previously said robotaxi testing would begin by the end of June.
Robotaxi Launch Timeline Accelerates
Bloomberg News reported that Tesla aims to launch its robotaxi service in Austin on June 12. Musk had not provided a specific launch date in his announcement.
BREAKING:
A MODEL Y ROBOTAXI WAS SPOTTED TESTING IN AUSTIN, TEXAS
Diamond Black looks so good 😎$TSLA https://t.co/lFHx4uEGPF pic.twitter.com/qgk0dKj5g2
— Dalton Brewer (@daltybrewer) May 18, 2025
The CEO said earlier this year that the robotaxi launch would start with 10 or 20 Model Y vehicles. Tesla has not responded to requests for comment about the specific launch plans.
The Austin testing represents a key milestone for Tesla’s autonomous vehicle ambitions. The company has been working toward full self-driving capabilities for several years.
Musk’s return to focusing on Tesla operations has energized some Wall Street analysts. Wedbush Securities’ Dan Ives recently set a $500 price target for TSLA shares.
Ives projects Tesla could reach a $2 trillion market capitalization. This would represent substantial growth from current levels.
Political Activities Impact Tesla Performance
During Musk’s government tenure, DOGE claimed $160 billion in savings through contract terminations and IT modernization. However, his political involvement came at a cost to Tesla’s business performance.
Tesla sales have fallen worldwide as Musk became more involved in politics. The decline has been attributed partly to consumer reactions to his political endorsements.
Musk criticized Trump’s $3.8 trillion spending package before leaving DOGE. He called the legislation disappointing and said it “undermines the work that the DOGE team is doing.”
The Congressional Budget Office estimates the spending package could add $5.7 trillion to federal debt by 2034. Musk’s criticism highlighted tensions within the administration.
His departure from government removes potential conflicts of interest concerns. Investors appeared relieved that Musk would refocus on Tesla’s core business operations.
The overnight stock gain reflects investor optimism about Musk’s renewed Tesla commitment. The company faces continued challenges from competitors and market conditions.
Tesla’s robotaxi testing in Austin represents the company’s most recent development in autonomous driving technology.
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