U.S. President Donald Trump has privately informed close advisers that Elon Musk will soon reduce his involvement in the federal government, Politico reported Wednesday, citing three unnamed sources close to Trump.
According to the report, Musk who had been playing a prominent role through the Department of Government Efficiency initiative is expected to transition back to focusing primarily on his business ventures, while still offering government support in a secondary capacity. Trump is said to remain supportive of Musk's contributions to the initiative so far.
The White House pushed back against the report, with the press secretary calling the Politico story garbage in a post on X. The statement added that Musk will continue his work on the government efficiency program until it is complete.
Tesla (NASDAQ:TSLA) shares rose more than 5% in afternoon trading, a breath of fresh air for Tesla stock investors. The gain followed a steep morning drop after the electric vehicle maker reported Q1 deliveries of 336,681 well below the consensus forecast of 377,000.
Major equity benchmarks, including the S&P 500, Dow Jones Industrial Average, and Nasdaq Composite, advanced in afternoon trading ahead of a Trump administration update on proposed reciprocal tariffs.
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