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Tesla (TSLA) has delivered something that many investors have been dreading for weeks: its growth prospects are even worse than most people feared.
As the electric vehicle (EV) producer prepared to report Q1 earnings, Wall Street analysts scaled back their expectations. Given how low the company’s deliveries for the quarter were, many experts worried that Tesla’s overall performance would be concerning.
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On April 22, after the close of markets, Tesla reported earnings, and Musk answered some of the questions investors had been seeking. The results were even worse than many had feared, with profits declining by an astounding 71%.
After missing on multiple key metrics, many investors are likely concerned about the company’s future. But even more concerning may be what Musk said on the call regarding his future plans, something many have been curious about.
Musk reveals concerning plans for the near future
As Tesla stock has trended downward over the past quarter, experts have speculated that Musk’s political antics are part of the problem. Between the anti-Tesla sentiment sparked by his work with Trump and his focus on the so-called Department of Government Efficiency (DOGE) over his company, Tesla has been severely compromised.
Related: Elon Musk gets more bad China news
Even Wedbush Securities analyst Daniel Ives, a notorious TSLA stock bull, has called for Musk to walk away from DOGE and prioritize helping Tesla get back on the path to growth. Ives even went as far as slashing his TSLA stock price target, a move that shocked the financial world.
On the Q1 earnings call, Musk discussed his plans for balancing private- and public-sector responsibilities. While he noted that he’ll be spending more time at Tesla, he isn’t abandoning his responsibilities on Capitol Hill, despite what Trump has hinted.
“I think I’ll 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,” he stated. “But starting next month, I’ll be allocating probably more of my time to Tesla now that the major work of establishing the Department of Government Efficiency is done.”
Some Tesla investors cheered at the news that Musk would likely be shifting more of his focus to Tesla. But these celebrations may be premature. Musk’s choice of words, specifically the term ‘probably,’ implies that he isn’t committed to anything and that he wants to keep the option to continue his work with DOGE.