Tesla Inc. (TSLA) managed to notch a weekly gain even as its CEO, Elon Musk, faced intense scrutiny and controversy during his final days in Washington, D.C., where he concluded his formal government role as head of the Department of Government Efficiency (DOGE). The stock closed lower on Friday, but still posted a strong 22.8% gain for May — buoyed by investor optimism surrounding Musk’s return to Tesla and upcoming technology rollouts.
Musk Rejects NYT Drug Abuse Allegations Amid Government Exit
On Friday morning, The New York Times published a detailed report alleging that Elon Musk had engaged in far more extensive drug use than previously disclosed while campaigning for Donald Trump. The report cited sources claiming Musk regularly consumed an assortment of substances — including ketamine, ecstasy, psychedelic mushrooms, and Adderall — and maintained a personal medication box containing roughly 20 pills. One alarming detail was that his alleged ketamine use was frequent enough to affect his bladder, according to the report.
Musk declined to answer questions directly about the report during a press conference with President Trump on Friday. Instead, he brushed off the inquiry by questioning the New York Times’ credibility and referencing its Pulitzer Prize-winning reporting on the Trump-Russia investigation.
“That New York Times? Let’s move on,” Musk said, sidestepping the allegations.
He appeared at the event with what seemed to be a black eye. When asked, Musk attributed the injury to playful roughhousing with his son, saying:
“I was horsing around with little X, and I said, ‘Go ahead and punch me in the face,’ and he did.”
Highlights:
NYT report alleges intense ketamine and psychedelic drug use by Musk during campaign trail.
Musk refused to address the report directly at Friday’s White House event.
He cited horseplay with his son as the cause of a visible black eye.
The White House event marked Musk’s final day in his official DOGE role.
Tesla Stock Holds Up Despite Turmoil and Closes May Strong
Despite the controversy surrounding Musk, Tesla stock ended the week higher, with a 22.8% gain for the full month of May. Shares closed at $346.46 on Friday, down 3.34% for the day, and edged slightly lower in after-hours trading to $345.52.
Investor confidence appears to have been buoyed by Musk’s public reaffirmation of his return to Tesla and other ventures. His announcement that he is now fully refocusing on Tesla, SpaceX, and X (formerly Twitter) has prompted renewed enthusiasm, particularly with several product rollouts and key events on the horizon.
Highlights:
Tesla stock gained 22.8% in May despite closing lower Friday.
Optimism driven by Musk’s return and upcoming product milestones.
Market appeared to shrug off NYT drug allegations.
Musk Returns Full-Time to Tesla, X, SpaceX; Robotaxi and Starship Plans in Motion
In a statement posted on his X platform earlier this week, Musk confirmed that he was leaving Washington and resuming around-the-clock leadership duties across his businesses. Musk specifically cited the need to “super focus” on Tesla, xAI, and SpaceX as new technology rollouts and critical tests draw near.
Among the most notable updates:
Tesla Robotaxi Testing: Musk confirmed that driverless Model Y vehicles are currently operating on public roads in Austin, Texas, with no one in the driver’s seat and no reported incidents. Full-scale robotaxi testing is scheduled to begin June 12.
First Self-Delivery Vehicle: Musk stated that Tesla will conduct its first customer vehicle delivery without a human driver from factory to destination as soon as next month.
Cybercab Launch: Tesla’s dedicated robotaxi, dubbed the Cybercab, remains on track for a 2026 launch.
SpaceX Starship Test: Musk’s aerospace firm conducted a booster and rocket test on Tuesday ahead of a major Starship launch slated for next week.
“Back to spending 24/7 at work and sleeping in conference/server/factory rooms,” Musk posted, signaling his trademark hands-on approach.
Highlights:
Full robotaxi testing in Austin set for June 12.
Self-driving delivery from factory to customer expected next month.
Cybercab robotaxi project still scheduled for 2026.
Starship launch preparations underway following test earlier this week.
DOGE Legacy and Investor Confidence in Musk’s Return
While Musk’s exit from the Trump administration marked the end of an unorthodox chapter in U.S. government efficiency efforts, his return to Tesla has been widely viewed as a bullish signal by markets. The DOGE initiative, criticized for inflated savings claims and limited observable impact on federal spending, concluded with Musk vowing to remain an advisor to Trump.
Investors appear more focused on Tesla’s technological ambitions than on political drama or personal controversies — for now. The strong May stock performance underscores that sentiment, though future volatility could hinge on both corporate execution and Musk’s ability to stay clear of further distractions.
Highlights:
DOGE savings widely questioned; Musk exits role with plans to advise Trump.
Tesla’s market momentum sustained by tech optimism and Musk’s return.
Investor tolerance for controversies remains, but long-term hinges on delivery.
