Tesla experienced a boost in share price this week following reports that chief executive Elon Musk could be leaving his post in the US Government.

The electric vehicle firm has had a turbulent start to the year, with share prices tumbling and a boycott spreading around the world.

Tesla showrooms have been protested and vehicles the subject of arson attacks, over Musk’s relationship with Donald Trump and work leading the new Department of Government Efficiency (Doge).

Although Trump is reportedly pleased with Musk’s work, several reports citing insiders claim he will be returning to Tesla full time in the coming months after mutual agreement with the President.

While the White House and Musk himself have both insisted reports of a departure are inaccurate, speculation is mounting.

Would breaking ties with the US Government be enough to save the brand?

Why is Tesla being boycotted?

More than 200 demonstrations at Tesla showrooms were planned on Saturday, with nine in the UK alone.

The protests, organised under the banner Tesla Takedown, are designed to hit the firm’s share price in protest at Musk’s work as head of the Doge.

The department, which was created for Musk, has instigated mass lay-offs of civil servants, slashed US foreign aid, and cut support for veterans and the team investigating Russia’s abduction of Ukrainian children – though it later backtracked on both of these plans.

Musk also sparked uproar after blaming Ukraine for a cyber attack on his social media site X.

Musk rapidly became an integral part Donald Trump’s inner circle. (Photo: Brendan Smialowski/AFP)

The tech billionaire has also faced strong criticism for his close relationship to Trump, to whom he donated a quarter of a billion dollars and who he has been advising during his second term in the White House.

Trump has been accused of abandoning Ukraine in his peace negotiations with Russia, hinted at seizing Greenland from a fellow Nato member, launched a trade war with China and US allies, attempted to make Canada the 51st state of the US and dismanted the department for education.

The President has also used his second term to crackdown on both legal and illegal migration, which the White House has called an “invasion”.

Musk should go – but damage may already be done

Kath Myers, managing director at PR firm Milk and Honey, said that “in order to have a chance of protecting the brand image”, Musk would have to leave the Trump administration.

“It’s clear that Tesla’s reputation has been seriously damaged by Elon Musk’s close ties to Trump and the US government. Potential buyers are boycotting Tesla all over world, including in the US,” she said.

However, Tesla may need to axe Musk altogether if it is serious about rebuilding the brand, Myers said.

“Even if he leaves Doge, it’s likely he’s lost too much trust and credibility to stay connected to the Tesla brand, and the organisation may need a clean break in order to distance itself from the toxicity of the last few months,” she said.

Musk leaves a hotel in Beijing by Tesla in 2023 (Photo: Tingshu Wang/Reuters)

“If he does return, he will need to deliver something really special on the product and innovation front for this to be forgotten or forgiven. The best thing Elon Musk can do now is start listening – to his customers, to his shareholders and, importantly to the advice of a communications professional.”

Oliver Foster, chief executive of PR firm Pagefield, said that a split between Trump and Musk had seemed inevitable as “two planet-sized egos does not make for a long-lasting relationship.”

“Arguably the damage has already been done to the Tesla brand, certainly in the short term, and so this surely means even Musk is now realising that he can’t afford to switch off customers, investors, voters and now the Trump inner circle all at the same time,” he said.

Tesla’s annus horribilis

Tesla’s stock price has been broadly falling this year, from $424 (£322) the day after Trump’s inauguration to a low of $222 (£168) on 10 March.

By mid-March, Tesla’s stock had dropped 36 per cent, but was still up by 54 per cent overall over the past 12 months.

Since 18 March, it has experienced a slight uptick, standing at $282 (£214) on Wednesday, but remains significantly below its price at the start of 2025.

It isn’t clear how significant a role the Tesla protest movement is playing, compared with the firm’s ageing fleet and increasing competition in the electric vehicles sector.

People protest against Tesla and Elon Musk near a Tesla dealership in California (Photo: Laure Andrillon/Reuters)

But Trump has tried to help the firm out; examining several Tesla models parked on the lawn of the White House and pledged to buy one the following morning.

While the auto industry is reeling from Trump’s hefty tariffs, experts say Tesla should be less severely affected – although won’t escape unscathed.

This is because while the firm does import some parts from other countries, its manufacturing and supply chain is largely based in the US.

White House departure could help save Tesla

Professor Jonathan A.J. Wilson, a brand expert at Regent’s University London, was more optimistic, predicting that Musk leaving the White House would “give a bounce back effect in share prices and sales.”

Long term, Wilson said he expected the brand to escape relatively unscathed as people adjust or forget about its association with the White House.

“Brands are very much like people, in terms of how they are viewed and treated. If you think about people: someone would have to do something really bad for you to cut them off for good,” he said.

“Add to that the fact that while we express more outrage and are more judgemental of famous people and those in power, we’re also more likely to forgive and move on. So Musk and Tesla are both familiar powerful brands: either this will blow over and people will put it behind them, or get used to the way they are – assuming they remain successful and powerful enough, and don’t do anything extremely bad.”