{"id":4433,"date":"2025-04-23T18:22:22","date_gmt":"2025-04-23T18:22:22","guid":{"rendered":"https:\/\/nationalgunowner.org\/index.php\/2025\/04\/23\/elon-musk-vows-to-refocus-on-tesla-amid-profit-plunge-brand-fallout\/"},"modified":"2025-04-23T18:22:26","modified_gmt":"2025-04-23T18:22:26","slug":"elon-musk-vows-to-refocus-on-tesla-amid-profit-plunge-brand-fallout","status":"publish","type":"post","link":"https:\/\/nationalgunowner.org\/index.php\/2025\/04\/23\/elon-musk-vows-to-refocus-on-tesla-amid-profit-plunge-brand-fallout\/","title":{"rendered":"Elon Musk Vows to Refocus on Tesla Amid Profit Plunge, Brand Fallout"},"content":{"rendered":"
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Elon Musk said he will be spending more time at Tesla going forward. Chip Somodevilla\/POOL\/AFP via Getty Images<\/span><\/figcaption><\/figure>\n

Despite reporting an over 70 percent profit plunge and missing analyst expectations, Tesla (TSLA)<\/a> yesterday (April 22) finally gave investors something to celebrate\u2014or at least hope for. CEO Elon Musk<\/a> said on an earnings call that he will refocus his attention on the EV maker and reduce his hours as head of the Trump administration\u2019s Department of Government Efficiency (DOGE) starting May.<\/p>\n

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Before yesterday\u2019s earnings release, Tesla\u2019s stock price had fallen more than 40 percent this year so far amid slowing sales and rising concerns about Tesla as both a company and a brand. Investors have urged Musk to devote more time to Tesla in recent months<\/a>.<\/p>\n

Musk said his \u201ctime allocation to DOGE will drop significantly\u201d to one to two days a week and pledged to dedicate the rest of his time to Tesla.<\/p>\n

Tesla shares shot up by 8 percent after the earnings call. \u201cMusk recommitting as CEO as Tesla and basically leaving his DOGE role over the next month is the biggest and best possible news Tesla investors could have heard last night,\u201d said Wedbush Securities<\/a> analyst Dan Ives<\/a> in a client note.<\/p>\n

Seth Goldstein, an equity strategist at Morningstar, said the move helps ease concerns that \u201cMusk could be distracted from leading Tesla and potentially hurt Tesla\u2019s brand\u201d due to his growing political involvement.<\/p>\n

For the first three months of 2025, Tesla\u2019s revenue fell 9 percent year-over-year to $19.3 billion, while profit plummeted 71 percent to just $409 million. The company blamed a sharp decline in vehicle deliveries<\/a>\u2014partly tied to its Model Y redesign\u2014for the disappointing results.<\/p>\n

Asked about the potential impact of Trump\u2019s 25 percent tariffs on imported automobiles and parts, Musk said Tesla\u2019s localized supply chains<\/a> \u201cputs us in a stronger position than any of our competitors.\u201d Still, he warned the company could feel the effects of tariffs on automotive components, as it imports many parts from Mexico and China.<\/p>\n

Musk reiterated his belief in free trade and low tariffs. \u201cI\u2019ve been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the elected representative of the people being the President of the United States,\u201d he told analysts.<\/p>\n

The company also reconfirmed its plans to begin production of a more affordable Model Y vehicle this summer and launch an unsupervised autonomous driving service in Austin, Texas<\/a>, in June.<\/p>\n

Whether Musk\u2019s renewed focus on Tesla can reverse the wave of backlash remains unclear. His political role has, for many, soured public perception of the company\u201447 percent of Americans currently have a negative view of Tesla,<\/a> according to a CNBC survey this week. The damage tied to DOGE \u201cwill not go away just by this move,\u201d Ives warned, adding that \u201csome of the damage will be stained forever in Europe and the U.S.\u201d<\/p>\n

Other analysts are more hopeful, at least for the short term. \u201cBy breaking [the DOGE] link, sales may pick up in the coming months,\u201d wrote Kathleen Brooks<\/a>, an analyst with brokerage firm XTB.<\/p>\n

Musk, for his part, is no stranger to adversity. \u201cAt Tesla, we\u2019ve gone through many, many crises over the years and been through many near-death experiences,\u201d he told analysts. While acknowledging that 2025 will bring \u201cunexpected bumps,\u201d he said he remains optimistic about the company\u2019s trajectory. \u201cWe\u2019re not on the ragged edge of death\u2014not even close.\u201d<\/p>\n

\t\t\t\t\"Elon<\/p><\/div>\n