Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk said Tuesday that he will spend less time at the Department of Government Efficiency.
What Happened: At the company’s first-quarter earnings call, Musk shared plans to reduce his involvement in government roles starting in May. He noted that the establishment of the DOGE department is nearly complete, allowing him to focus more on Tesla.
“I do think there's you know, the the the large slug of work necessary to get the votes team in place and working in the government to get the financial house in order is mostly done,” said the entrepreneur.
However, Musk said that he will have to keep “continuing doing it” for the rest of President Donald Trump’s term to “make sure that the waste and fraud that we stop does not come roaring back.”
He said that he’ll continue to spend a “day or two per week” on government matters as long as Trump would like him to do so or it is useful.
Musk reassured investors that Tesla has weathered numerous crises, including several near-death experiences, but emphasized that the current situation is not one of those critical times.
See Also: Trump’s Bowling Ball Tale Bounces Back, Japan Refutes President’s Car Safety Test Claims
Why It Matters: The context surrounding Musk’s decision to step back from government roles is crucial. On Sunday, Wedbush analyst Dan Ives suggested that Musk should prioritize his role as CEO of Tesla, highlighting the importance of his involvement in the company. Ives, known for his bullish stance on Tesla, had previously lowered his price target on the stock, citing concerns over Musk’s government commitments.
Further, on Tuesday, Ives flagged six threats tied to Musk’s government role, describing Tesla’s situation as “code red.” Analysts were concerned about the potential impact of Musk’s divided attention on the company’s performance.
Additionally, Tesla’s first-quarter earnings report highlighted a revenue and EPS miss, with external factors like the “tariff landscape” and “changing political sentiment” affecting guidance. First-quarter revenue came in at $19.34 billion, down 9% on a year-over-year basis, below the consensus estimate of $21.35 billion.
Benzinga Edge Stock Rankings indicate Tesla has Value in the 13th percentile and Growth in the 67th percentile. How do other EV rivals compare? Check that out here.
Photo Courtesy: Shutterstock/Joshua Sukoff
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This story was generated using Benzinga Neuro and edited by Shivdeep Dhaliwal
