Washington:
Elon Musk will focus on Tesla in May, significantly reducing Trump administration’s work.
“Maybe next month, my time allocation to Doge will be significantly reduced,” Musk said he mentioned the “Government Ministry of Efficiency” work at the beginning of the revenue call.
The comments said as Tesla reported a $409 million profit following a decline in car sales, analysts said it reflected the brand’s damage caused by President Donald Trump’s mask work, which cut the US federal workforce.
Revenue fell 9% to $19.3 billion.
The company has retreated from its 2025 guidance citing unpredictability in trade policies and demand.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policies have a negative impact on the global supply chain and cost structure of Tesla and our fellow members,” the company said.
“This dynamic, along with changing political sentiment, could have a meaningful impact on the demand for our products in the near future.”
On the plus side, Tesla said it is on track to launch new vehicles “including more affordable models” in the first half of 2025.
Tesla also confirmed in a press release that by June the planned launch of Robotaxi for autonomous driving in Texas remained “on orbit.”
Musk reiterated his bullish outlook on Tesla’s long-term outlook, highlighting his leadership in key growth areas such as robotics, autonomous driving and artificial intelligence.
– dog work ‘Matiss bost done’ –
The world’s wealthiest Musk has donated more than $270 million to Trump’s 2024 presidential election.
Analysts warn of major brand damage to Tesla from Musk’s leadership role in Doge. It allows access to government databases with sensitive personal information and implements thousands of job openings.
Reforms to the US government’s business have led to questions about programs such as Social Security retirement benefits and continuation of programs such as hurricane forecasting and humanitarian assistance.
Since Trump returned to the White House, Tesla has targeted consumer boycotts and vandalism, but sales have dived in many markets, with second-hand Teslas prices plunging into signs of the brand’s unpopularity.
Over the phone, Tesla’s Chief Financial Officer Vaibhav Taneja described the response as “unfair hostility towards our brand.”
In his opening comment, Musk defended his work for Doge and dismissed critics as “paid” beneficiaries of “waste and fraud” which he claims.
But Musk said Doge’s work is “almost done” and added that he will not withdraw government work completely.
“I think I’m going to continue to spend a day or two a week on government issues, or as long as the President wants me to do so, as long as it’s useful,” Musk said.
“But starting next month, I will be allocating much more time to Tesla.”
Dan Ives of Wedbush Securities Analyst, a longtime supporter of Tesla, called on Musk to finish Doge’s work and praised the CEO’s announcement.
“Mask took a big step on the phone,” Ives said in X.
In addition to that image, Tesla has pointed out tariffs as another headwind for the company, but it should be noted that EV makers are in better positions than their rivals, which rely widely on US imported vehicles.
The Trump administration has set 25% tariffs on imported vehicles.
“I will coordinate my advice with the president. He will hear it… But of course it’s up to him to make his decision,” Musk said of Trump.
“I’ve been on the record many times saying I believe it’s a good idea for prosperity.”
Tesla shares rose 4.7% in after-hours trading.
(Except for the headline, this story has not been edited by NDTV staff and is published by Syndicate Feed.)
