Tesla stock rises 5% after Musk says time at DOGE will drop ‘significantly’

Tesla Stock Rises as Musk Shifts Focus Back from Washington to Company

• Tesla (TSLA) stock surged 3% in early Wednesday trading after CEO Elon Musk announced he would reduce time spent in Washington, D.C., and refocus on Tesla.
• Musk stated on the Q1 earnings call that starting May, his time spent at DOGE (Department of Government Efficiency) would drop significantly, with more attention given to Tesla’s operations.
• Despite Musk’s recommitment, Tesla’s Q1 earnings disappointed:
  • Revenue: $19.34 billion, missing Wall Street’s $21.43 billion forecast.
  • Adjusted EPS: $0.27, down from $0.44 expected.
  • Profits plunged 40% year-over-year.
• Tesla attributed its weak performance to trade uncertainty, citing:
  • Evolving trade policies disrupting supply chains.
  • Rising costs affecting Tesla and other automakers globally.
  • Tariffs impacting its energy division and battery sourcing from China.
  • Restrictions on rare earth minerals from China, used in EV motors.
  • Dependence on China-sourced manufacturing equipment.
• The company removed its long-term growth forecast and will revise 2025 guidance in its next earnings report.
• Despite challenges, Tesla reaffirmed:
  • Production of its affordable EV models is on track for early 2025.
  • Robotaxi production will begin in 2026, with testing already underway.
• Musk also shared he had spoken with Trump, recommending lower tariffs, but emphasized final trade policy decisions lie with the president.
• Barclays and BofA analysts expressed cautious optimism, noting Musk’s deeper involvement could boost Tesla’s AV/AI strategy and restore investor confidence.
• TSLA closed at $250.74 (+5.37%), with slight gains continuing in after-hours trading.