Tesla Q1 Results Disappoint, But Musk Shift Lifts Stock

Lovely P.
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photo via @elon_musk_d_private

Tesla Q1 results came in below expectations, but investor confidence grew after CEO Elon Musk said he will reduce his time in Washington to focus more on the company. Despite weak earnings and slowing sales, Tesla shares rose in after-hours trading, up 5% following Musk’s announcement.

Tesla Q1 Results Miss Targets

In its latest earnings report, Tesla revealed that revenue dropped to $19.34 billion—falling short of the $21.43 billion analysts were expecting and below the $21.3 billion reported in the same quarter last year. The electric carmaker’s adjusted earnings per share came in at $0.27, also missing forecasts.

Other financial details include:

  • 336,681 vehicles delivered, the lowest in nearly three years
  • Automotive gross margin (excluding regulatory credits): 12.5%
  • Overall gross margin: 16.3%, slightly better than predictions

Tesla pointed to changing global trade conditions and shifting political trends as reasons behind its weaker performance. “Uncertainty in the automotive and energy markets continues to increase,” the company said in a statement, citing evolving trade policies and global supply chain pressures.

Musk’s Shift Sparks Stock Rise

The Tesla Q1 results didn’t stop the company’s stock from jumping after Musk made a key announcement: starting in May, he’ll step back from his work at the Department of Government Efficiency (DOGE) and dedicate more time to Tesla.

“Starting early next month… my time allocation to DOGE will drop significantly,” Musk said on the post-earnings call. He noted he will continue to spend one or two days a week at DOGE, but plans to “allocate far more” time to Tesla. This signal of renewed focus reassured many investors.

Meanwhile, Tesla is sticking to its production goals:

  • A new affordable vehicle is still on track for a 2025 release
  • Robotaxi volume production is expected in 2026
  • Testing of robotaxis will begin in Austin this June

Even with these plans, reports suggest delays. Reuters recently shared that Tesla’s affordable EV project, including a stripped-down Model Y, may be postponed. Tesla didn’t deny this, but said upcoming models will resemble current ones and focus on affordability.

Political tensions have also added pressure. Musk’s public association with right-wing leaders has sparked backlash, with rising protests and reports of vandalism at Tesla showrooms across Europe and the U.S. This controversy is affecting both the brand and potential demand.

Despite that, Musk’s plan to refocus on Tesla appears to have helped calm investor nerves—for now.

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