- Trump has tasked the Tesla and SpaceX CEO to lead efforts to cut government funding
- Shares of Tesla rebounded Wednesday following Politico’s report
US President Donald Trump has told members of his Cabinet and other close contacts that his billionaire ally Elon Musk will soon step back from his government role, Politico reported on Wednesday, citing three people close to Trump.
Trump has tasked the Tesla and SpaceX CEO to lead efforts to cut government funding and dismantle various US agencies as a special government employee.
Politico reported that both Trump and Musk decided in recent days that Musk will soon return to his businesses.
Representatives for the White House and the Musk-led task force could not be immediately reached to confirm the report.
Meanwhile, shares of Tesla rebounded Wednesday following the report Musk would soon retreat from his work for Trump’s administration, a role that has weighed on his electric car brand.
Shares jumped 3.8 percent shortly after midday following a Politico report that Musk would soon leave or sharply reduce his work for Trump. Shares had fallen more than six percent earlier Wednesday following weak first-quarter auto sales.
