Tesla CEO Elon Musk said on Tuesday he would cut back “significantly” the time he devotes to the Trump administration from next month and spend more time running the electric-vehicle maker.
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Tesla shares, which had risen 4 per cent in after-hours trading right before an earnings conference call began, spiked to trade up 5.5 per cent on Musk’s comments.
The remarks came as deliveries of Tesla’s ageing line-up of cars have nosedived. Investors have sold off the company’s stock, assailed by doubt about how much time Musk is spending managing the company because of his involvement in the so-called Department of Government Efficiency (Doge), where he has led efforts to cut federal jobs.
His actions have incensed some people, leading to protests and vandalism at Tesla showrooms that have been reflected in a drop in brand value and a rise in trade-ins. Sales in California – its largest US market – have fallen sharply. Musk, on the Tuesday conference call with analysts, acknowledged the blowback on the company.
After market close on Tuesday, Tesla reported profitability for its core vehicle business that topped rock-bottom expectations and said it was on track to produce an affordable car, offering some hope to investors as sales have dropped.
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But the EV maker said it would have to reassess its growth forecast in three months because it was “difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains”.