Musk shifts focus to Tesla as profits fall 71 pc amid DOGE controversy
NEW YORK: Elon Musk has said that he will be spending less time in Washington cutting government costs and more time managing Tesla after the electric vehicle company reported a significant decline in profits.
According to news report by the Associated Press, Musk said on a conference call with analysts on Tuesday that “now that the major work of establishing Department of Government Efficiency is done,” that he will be “allocating far more of my time to Tesla” starting in May. Musk said he now expects to spend just “a day or two per week on government matters”.
Tesla has struggled with vehicle sales amid angry protests over Musk’s leadership of DOGE, a cost-cutting government initiative that has caused divisions within the country. The Austin, Texas-based company reported a 71% drop in profits and a 9% decline in revenue for the first quarter.
“Investors wanted to see him recommit to Tesla,” said Dan Ives of Wedbush Securities. “This is a big step in the right direction.”
Following Musk’s announcement, investors sent Tesla shares up more than 5% in after-hours trading, although they remain more than 40% lower for the year.
