Tesla Rises as Musk Signals DOGE Work ‘Mostly Done’
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What recent comments did President Trump make about the Federal Reserve?
No, I have no intention of firing him. I would like to see him be a little more active in terms of his idea to lower interest rates. This is a perfect time to lower interest rates. If he doesn't, is it the end? No, it's not.
Those Oval Office comments came after Trump lashed out at the Fed chair last week, writing in a social media post that Powell's termination cannot come fast enough, prompting a sell-off in American assets like the dollar and U.S. treasuries and pushing safe haven assets like gold to a new record high. Trump also said that the 145% tariff on China was too high. That boosted Japanese and Korean stocks in particular, as tech companies with large exposure to the U.S. market like TSMC and Foxconn rallied on the prospect of a de-escalation in hostilities between Washington and Beijing. Shares of Tesla are up more than 5% in off-hours trading after the EV maker reported first quarter earnings that included word of a 13% slide in vehicle deliveries and a more than 70% decline in net income. But the headline news is that CEO Elon Musk signaled that his work with the Trump administration could be coming to an end. Stephen Wilmot is the journal's European Autos reporter.
How is Tesla's stock performing after the latest earnings report?
Stephen, I think the best way for us to understand Tesla's situation now is to hear from Musk himself. So I'm going to play a few clips here from yesterday's earnings call, starting with Musk explaining his early work setting up the Department of Government Efficiency was mostly done. Here he was.
And I think starting probably in next month, May,
What does Elon Musk say about his work with the Trump administration?
Stephen, was that the answer investors were looking for that might explain Tesla's stock gaining after these results?
Well, I think it almost certainly has something to do with it, with the positive share price reaction. The worry that Musk isn't dedicating enough time to Tesla isn't new, of course, but it's been turbocharged by Doge and the fact that he's spent so much time in Washington.
What are investors' reactions to Musk's focus on Tesla?
There's also obviously the fact, and this is new, that unlike the time he spent historically on other projects such as SpaceX, his time on Doge has been hugely politically contentious and therefore has carried a bit of a brand risk for Tesla. So I think for both reasons, investors are happy that he's going to be spending a bit less time in Washington, a bit more time on Tesla. Another factor was that the company confirmed that it was on track to produce a more affordable model in the first half. There had been some rumours that the project was off track, so I think that also was a relief. Coming against the backdrop of very poor delivery numbers, the need for a more affordable model has never been more obvious.
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Chapters
7 chapters
1
What recent comments did President Trump make about the Federal Reserve?
1:34–2:58
2
How is Tesla's stock performing after the latest earnings report?
2:58–3:25
3
What does Elon Musk say about his work with the Trump administration?
3:25–3:51
4
What are investors' reactions to Musk's focus on Tesla?
3:51–6:26
5
What future developments did Musk promise for Tesla?
6:26–8:01
6
How does Tesla's valuation compare to traditional car makers?
8:01–9:51
7
What are the expectations for Tesla's robo-taxi service?
9:51–13:14