Musk Says He’ll Significantly Cut Back Time At DOGE, Push Trump For Lower Tariffs
Key Facts
Musk told investors “starting next month, I’ll be allocating far more of my time to Tesla,” noting he will 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 also briefly addressed President Donald Trump’s sweeping tariff policies, saying he will “continue to advocate for lower tariffs instead of higher tariffs, but that's all I can do.”
The billionaire defended his work with DOGE, blasting critics of the agency and recent protests against Tesla, alleging protesters that organized against the electric vehicle maker last month were paid with “fraudulent money.”
Musk’s comments come hours after Tesla reported its worst quarterly profit since 2021 and revenue $2 billion below average Wall Street estimates.
Tesla stock closed up 4.6% at $237.97 on Tuesday, surging another 4% in after-hours trading, though the share price remains around their lowest point so far this year.
Big Number
Musk’s estimated net worth is up nearly $6 billion Tuesday, reaching $361 billion. He has remained the wealthiest person in the world by far recently, even though his net worth is down over $100 billion from its peak in December.
How Did Tesla Perform Last Quarter?
Tesla reported adjusted $0.27 earnings per share and $19.3 billion in revenue for the first quarter, marking its least profitable quarter since the same quarter five years ago. The company’s automotive revenue slid 20% to $14 billion, its weakest mark since the third quarter of 2021. JPMorgan analyst Ryan Brinkman said last month, “We struggle to think of anything analogous in the history of the automotive industry, in which a brand has lost so much value so quickly.”
Key Background
Musk, who provided over $250 million to Trump’s presidential campaign, became a senior adviser to Trump and the de facto leader of DOGE by January. The initiative has since been responsible for some 280,000 layoffs, some of which are slated to be reversed, across 27 agencies, such as the Department of Education, Department of Agriculture and the U.S. Agency for International Development. Lawmakers on both sides of the aisle voiced concerns that the cuts were carried out in a disorganized fashion. Alongside the criticism Musk has faced for his role in DOGE, the billionaire has also been accused of doing a Nazi salute during an inaugural event in January and blasted for making a digital appearance at a rally for Germany’s far-right Alternative for Deutschland party. The controversy around Musk eventually reached Tesla, which reported lower than expected Q1 vehicle deliveries last month and has been hit with protests and vandalism since January. Wedbush analyst Dan Ives said in a March note Musk’s government work and time spent at the White House “essentially turned Tesla into a political symbol,” which is a “bad thing.” Ives, an analyst covering Tesla who has largely been optimistic about the company, urged Musk to “take a step back” from DOGE and suggested the billionaire formally announce plans to “balance” his many roles.
Comments
Post a Comment