Tesla shares surged nearly 6% on Tuesday following CEO Elon Musk’s reaffirmation of his commitment to focusing on his core businesses ahead of an imperative SpaceX rocket launch. Over the weekend, Musk took to his social media platform X, emphasizing the need to be “super focused” on X, the artificial intelligence venture xAI, and Tesla as they roll out “critical technologies” after experiencing temporary outages.
“Major operational improvements need to be made,” Musk stated, referencing recent uptime issues. He indicated that he plans to devote himself to work “24/7,” acknowledging that the backup systems “should have worked but did not.” The social media platform, previously known as Twitter, encountered an outage over the weekend that affected thousands of users, as reported by DownDetector. This follows a series of outages that have plagued the platform since Musk acquired it in 2022.
In a notable shift, Musk has started to signal a retreat from his involvement in politics, opting to center his efforts on his businesses. During Tesla’s April earnings call, he revealed plans to significantly reduce his role in President Donald Trump’s Department of Government Efficiency. This change comes after Musk invested substantial time and resources in political causes, particularly during the 2024 election cycle aimed at supporting Trump. According to a recent Washington Post report, Musk has become disenchanted with the political landscape and is keen to refocus on business management.
Musk’s comments coincide with his statement at the Qatar Economic Forum last week, where he committed to diminishing his financial contributions to political campaigns moving forward. This pivot comes at a critical time for SpaceX, which is facing heightened expectations as it prepares for the Starship rocket launch on Tuesday evening following two explosive incidents in January and March.
Before the launch, Musk announced an all-hands livestream on X scheduled for 1 p.m., as anticipatory buzz grows. However, Tesla continues to grapple with the repercussions of Musk’s political engagements. The company experienced a steep decline in sales, with just 7,261 cars sold in Europe in April, marking a staggering 49% drop compared to last year, according to the European Automobile Manufacturers’ Association. The automotive giant faces ongoing protests at showrooms and potential brand damage as fallout from Musk’s political activities lingers.
As Tesla and SpaceX tread into new operational territories, the eyes of investors and followers remain keenly focused on Musk’s next moves, hoping for renewed strength in both the tech and automotive sectors.
With ambitions to steer clear of political distractions, Musk appears poised to channel his efforts back into the innovations that have defined his entrepreneurial legacy, even as he navigates the complexities of the tech landscape.
Original Source: https://www.cnbc.com/2025/05/27/tesla-shares-musk.html
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Publish Date: 2025-05-27 21:44:00
