April 23 - Tesla (TSLA, Financial) shares advanced more than 6% in premarket trading on Wednesday after Chief Executive Elon Musk said he plans to scale back his involvement with the federal Department of Government Efficiency, or DOGE, to refocus on the automaker.
The comment followed Tesla's first-quarter earnings release late Tuesday, which showed adjusted earnings per share of $0.27 on revenue of $19.34 billion. Both figures fell short of analyst expectations of $0.42 EPS and $21.4 billion in revenue.
Automotive sales dropped 20% year over year as Tesla faced stiffening competition and fallout tied to Musk's political profile. The billionaire's close association with U.S. President Donald Trump and his leadership in the DOGE initiative, aimed at shrinking federal government operations, has drawn backlash, including protests and vandalism at Tesla showrooms.
On the post-earnings call, Musk said his time with DOGE will “drop significantly,” estimating he'll spend just one or two days per week on government matters. He added that, starting in May, his primary focus would shift back to Tesla.
The company also said it is reassessing its full-year guidance amid recent performance pressures.
