Elon Musk Sends Clear Message to Investors as Tesla Flounders
Following Tesla's troubling first-quarter earnings report on Tuesday evening that revealed a 71% drop in profit and a stark 12.9% decline in sales when compared to Q1 of 2024, Elon Musk announced to concerned investors that he'll be going back to Tesla.
Specifically, Musk said he would be taking a rather dramatic step back from his work with the Department of Government Efficiency (DOGE), reportedly planning to just spend one or two days a week there, with the rest of his focus zeroing back in on Tesla.
"Starting probably in [the] next month, May, my time allocation to DOGE will drop significantly," Musk said during Tesla’s earnings call.
"I think I'll continue to spend a day or two per week on government matters for as long as the president would like me to do so and as long as it is useful," Musk continued. "But starting next month, I’ll be allocating probably more of my time to Tesla."
Despite Musk's announcement to shift the large majority of his focus back to Tesla, some investors appear to strongly believe too much damage has already been done to the brand.
"The brand damage caused by Musk in the White House/DOGE over the past few months will not go away just by this move and some of the damage will be stained forever in Europe and the US," Wedbush Securities’ Dan Ives said on Wednesday.
Related: Tesla Makes Major Moves Amid Stock Volatility
With other major investors and Wall Street analysts echoing similar thoughts to Ives—paired with the unsettling numbers revealed during the company's earnings call on Tuesday—Tesla's stock still managed to see big gains on Wednesday and continued gains into Thursday afternoon.
Along with Musk's reassurance to concerned investors that his plan going forward is to allocate more of his time and focus on Tesla come May, it's also worth noting his special government status was reportedly already set to end on May 30 anyway.
Related: Tesla's Cybertruck Isn't Cool Anymore—and That Might Save It
source https://www.mensjournal.com/news/elon-musk-sends-clear-message-tesla-investors-earnings-report
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