Despite reporting an over 70 percent profit plunge and missing analyst expectations, Tesla yesterday (April 22) finally gave investors something to celebrate—or at least hope for. CEO Elon Musk said on an earnings call that he will refocus his attention on the EV maker and reduce his hours as head of the Trump administration’s Department of Government Efficiency (DOGE) starting May.
Before yesterday’s earnings release, Tesla’s stock price had fallen more than 40 percent this year so far amid slowing sales and rising concerns about Tesla as both a company and a brand. Investors have urged Musk to devote more time to Tesla in recent months.
Musk said his “time allocation to DOGE will drop significantly” to one to two days a week and pledged to dedicate the rest of his time to Tesla.
Tesla shares shot up by 8 percent after the earnings call. “Musk recommitting as CEO as Tesla and basically leaving his DOGE role over the next month is the biggest and best possible news Tesla investors could have heard last night,” said Wedbush Securities analyst Dan Ives in a client note.
Seth Goldstein, an equity strategist at Morningstar, said the move helps ease concerns that “Musk could be distracted from leading Tesla and potentially hurt Tesla’s brand” due to his growing political involvement.
For the first three months of 2025, Tesla’s revenue fell 9 percent year-over-year to $19.3 billion, while profit plummeted 71 percent to just $409 million. The company blamed a sharp decline in vehicle deliveries—partly tied to its Model Y redesign—for the disappointing results.
Asked about the potential impact of Trump’s 25 percent tariffs on imported automobiles and parts, Musk said Tesla’s localized supply chains “puts us in a stronger position than any of our competitors.” Still, he warned the company could feel the effects of tariffs on automotive components, as it imports many parts from Mexico and China.
Musk reiterated his belief in free trade and low tariffs. “I’ve been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the elected representative of the people being the President of the United States,” he told analysts.
The company also reconfirmed its plans to begin production of a more affordable Model Y vehicle this summer and launch an unsupervised autonomous driving service in Austin, Texas, in June.
Whether Musk’s renewed focus on Tesla can reverse the wave of backlash remains unclear. His political role has, for many, soured public perception of the company—47 percent of Americans currently have a negative view of Tesla, according to a CNBC survey this week. The damage tied to DOGE “will not go away just by this move,” Ives warned, adding that “some of the damage will be stained forever in Europe and the U.S.”
Other analysts are more hopeful, at least for the short term. “By breaking [the DOGE] link, sales may pick up in the coming months,” wrote Kathleen Brooks, an analyst with brokerage firm XTB.
Musk, for his part, is no stranger to adversity. “At Tesla, we’ve gone through many, many crises over the years and been through many near-death experiences,” he told analysts. While acknowledging that 2025 will bring “unexpected bumps,” he said he remains optimistic about the company’s trajectory. “We’re not on the ragged edge of death—not even close.”