Tesla (TSLA, Financial) shares rose over 8% following CEO Elon Musk's announcement to dedicate more time to the company and significantly reduce his political engagements. This news, along with a softened stance on tariffs by former President Trump, boosted investor sentiment. Prior to Tesla's earnings call, Trump hinted at reducing foreign tariffs and reassured that he had no intention of dismissing Federal Reserve Chairman Jerome Powell. Previously, Trump had increased pressure on Powell, threatening to fire him before his term ended.
Despite the stock surge, Tesla's first-quarter performance was lackluster. Automotive revenue fell 20% year-over-year, and net income dropped by 71%. The company plans to reassess its 2025 guidance during the second-quarter update. Tesla reported adjusted earnings per share of 27 cents and revenue of $19.34 billion, both below analyst expectations of 39 cents per share and $21.11 billion in revenue.
During the earnings call, Musk also mentioned that starting next month, he will significantly reduce the time spent at the Department of Government Efficiency (DOGE).
