Elon Musk is going back to Tesla. But is it too late to reverse the damage he’s done?

Elon Musk says he’s going back to Tesla. The question now is whether or not its too late to reverse the brand damage that’s been done.

Elon Musk says he’s going back to Tesla. The question now is whether or not its too late to reverse the damage that’s been done. Musk told investors on Tuesday night he would step back from his role running the Department of Government Efficiency (DOGE) next month, spending only one or two days a week there. He said he would spend the freed up time running Tesla. But even if Musk devotes more time to the now troubled company, it’s clear that his high profile support of President Donald Trump and controversial role at DOGE has already cost Tesla. There have been protests outside showrooms and vandalism at its facilities. Earlier this month, the automaker reported the biggest drop in sales in its history during the first quarter as buyers fled the brand. And that damage could be long lasting, even according to some of his fans. Some Tesla bulls are predicting his pullback from DOGE will be enough to help the company avoid further problems. Shares of Tesla (TSLA) were up more than 3% in early trading Wednesday, even after the electric automaker reported a 71% plunge in net income due to tumbling sales around the globe. But even Wedbush Securities’ Dan Ives, long known as one of Tesla’s most prominent optimists on Wall Street, said that sales demand will be down 10% permanently due to Musk’s political profile. “The brand damage caused by Musk in the White House/DOGE over the past few months will not go away just by this move and some of the damage will be stained forever in Europe and the US,” he said in a note to clients early Wednesday.