Free-falling Tesla profits prompt Elon Musk to step back from DOGE
Electric car marque Tesla is dealing with some downright ugly profits as of late. So much so that eccentric CEO Elon Musk says he’ll be stepping back from the oft-criticized DOGE to focus on the hemorrhaging EV brand. But not entirely.
Tesla profits have dropped like a stone year-over-year, and Elon Musk isn’t helping
Elon Musk started yesterday’s earnings call with a shocking bit of news. Specifically, the South African-born businessman would be reducing the amount of time he spends heading the Department of Government Efficiency (DOGE). Instead, the DOGE boss and Tesla CEO said he will be “allocating far more of my time” to the wounded automaker and technology company.
In addition to his DOGE announcement, the highlight of the call was the staggering declines in the company’s performance year-over-year. Compared to last year, Tesla’s net income plummeted by 71%. Tesla’s profits from vehicle sales fell 20% year-over-year, despite a bump in electric car sales across the segment.
Musk also used the call as a venue for his rhetoric, including blaming recent Tesla protests on unseen financiers. “If the ship of America goes down, we all go down with it,” Musk added. But the sentiment isn’t enough to keep the Tesla CEO from reducing the time he spends on DOGE.
Tesla stock rose as Musk announced he would cut DOGE time ‘significantly’
Part of Musk’s intent to right the ship involves his announcement to reduce his time with DOGE. “Starting early next month, in May, my time allocation to DOGE will drop significantly,” Musk said to his investors. The announcement had an immediate impact on Tesla’s stock, namely a 3% rise, per Yahoo! Finance.
But, as that sounds, Musk won’t be throwing in the towel altogether, just partially. Musk says he will continue to spend a “day or two per week” focused on slashing government programs and jobs as of next month.
It’s no secret that Musk’s appointment to the reins of DOGE was meant to be temporary. 130 days was originally the timeframe for his unpaid special government employee status. However, Musk said in the earnings call that he would maintain his work with DOGE “for as long as the president would like.”
