Elon Musk reduces his role in the Trump administration to focus on Tesla

Elon Musk has announced that he will reduce the time dedicated to his role in DOGE with the Trump administration to focus more on Tesla. The news had an immediate impact on the Tesla (TSLA) stock, which recorded a jump of 5.4% in after-hours trading, reaching 250.80 dollars after already closing the day on April 22 with a rise of 4.6%.

The announcement came in conjunction with the publication of the financial results for the first quarter of 2025, which showed a performance below Wall Street’s expectations. Despite this, Tesla decided not to sell its 11,509 Bitcoin, keeping its position in cryptocurrencies unchanged.

Tesla keeps its Bitcoin despite the disappointing results of the first quarter

In the first quarter of 2025, Tesla recorded revenues of 19.34 billion dollars, a figure that represents a decrease of 9.2% compared to the same period of the previous year and a result 7.85% below analysts’ estimates. Net profit also suffered a sharp contraction, amounting to 409 million dollars, down 80.8% compared to the previous quarter and 70.5% compared to the first quarter of 2024.

These numbers reflect the difficulties that the company is facing, including the decline in sales, economic uncertainty, and the impact of the tariff policies of the Trump administration.

“`html

Despite the decline in financial results, Tesla has decided to keep its position in Bitcoin intact, which amounts to 11,509 BTC. The market value of the cryptocurrencies held by the company has fallen from 1.076 billion to 951 million dollars in the first quarter, in line with the 11.56% decline in the price of Bitcoin, which has dropped to 82,514 dollars, according to CoinGecko data.

“`

However, thanks to a recent market rebound, the current value of Tesla’s Bitcoin reserve has once again exceeded 1.07 billion dollars, according to Bitcoin Treasuries. It is important to note that Tesla has not changed its position in Bitcoin since June 30, 2022.

A significant regulatory change has also influenced the way public companies can report criptovalute in their financial statements. A new rule from the Financial Accounting Standards Board now allows cryptocurrencies to be recorded at their market value, whereas previously only losses could be accounted for unless the assets were sold.

Musk promises more attention to Tesla and less to the government

During the conference call on April 22, Musk announced that starting in May he will dedicate “much less time” to his role in the so-called Department of Government Efficiency (DOGE), the body of the Trump administration tasked with reducing waste and improving the efficiency of the federal government.

“Starting probably from next month, May, my commitment to DOGE will decrease significantly,” Musk stated. “I will dedicate much more time to Tesla now that the main work for the establishment of the Department of Government Efficiency has been completed.”

Musk added that he will still continue to dedicate “one or two days a week” to DOGE activities, to help President Donald Trump to ensure that “the waste and fraud we have stopped do not reappear”.

The market reacts positively to Musk’s announcement

The announcement by Musk had an immediate effect on the Tesla stock, which experienced a surge in after-hours trading. After closing the day on April 22 with an increase of 4.6%, the stock gained an additional 5.4%, reaching 250.80 dollars.

This rise occurred in a context of general recovery of the stock market, which has tried to recover after a week of losses. However, Tesla shares remain down by over 37% since the beginning of the year, a figure that reflects the structural difficulties of the company, including the decline in sales, political instability, and the increase in Musk’s public exposure.

A look to the future: more focus on innovation

With the downsizing of his role in the government, Musk intends to return to focusing on Tesla’s main activities, particularly on technological innovation and production expansion. The decision not to sell the Bitcoin, despite the drop in value, indicates a long-term strategy and confidence in the recovery of the bull market of cryptocurrencies.

In the meantime, investors seem to have positively received the news of Musk’s increased commitment to Tesla, hoping that this might translate into a recovery of the company’s performance in the coming quarters.

Conclusion: Musk reorients his priorities

Elon Musk’s decision to reduce his involvement in the Trump administration to focus on Tesla represents an important signal for the market. At a time when the company is facing significant challenges, the return of the CEO to a more operational role could prove crucial for reviving growth and investor confidence.

Despite the disappointing results of the first quarter, the resilience of the position in Bitcoin and the renewed focus on business management indicate a strategy oriented towards stability and relaunch. It remains to be seen whether Musk’s moves will be sufficient to reverse the course and bring Tesla back onto a path of sustainable growth.