(Barron's) - Musk gave investors part of what they wanted. He’ll spend less time in Washington, D.C.
Musk opened Tesla’s first-quarter conference call discussing DOGE. Starting in May, Musk said: “My time allocation to DOGE will drop significantly.” Musk added that the work of setting up DOGE was done.
Tesla shares jumped shortly after his comments, rising almost 5% in after-hours trading.
Musk's special government employee status allows him to serve in the role for 130 days, which would theoretically conclude at the end of May. Musk has previously said that he believes he'll accomplish most of DOGE's work in that amount of time.
What Else We Learned on the Call
Musk’s DOGE news stole the show, but there were other tidbits investors should pay attention to on the earnings call.
CFO Vaibhav Taneja quantified some of Tesla’s tariff headwinds. Tariffs on parts could increase the cost of a car by up to $2,000 despite 85% of the content coming from North America.
Tariffs also hit capital spending. Tesla is bringing in equipment from overseas. “It’s expensive to bring it in from China right now,” said Musk.
Tesla’s robot production was also impacted by China’s export restrictions on magnets made with rare earth metals.
Taneja also acknowledged some brand damage from the political landscape. He hopes that new products and autonomous robotaxis can help repair some of the damage done.
Robotaxis are still on track for Austin in June. Musk added that millions of autonomous Tesla vehicles should be taking paid rides by the second half of 2026. What’s more, Tesla owners could have the ability to take their eyes off the road while in their Tesla by the end of 2025, according to Musk.
“We’re still planning to release models this year,” added another executive, adding that the ramp might be a little slower than expected. More new models are what investors expect. Details about the car were still thin, however.
So far, investors are happy with the results. Shortly before 7 p.m. Eastern time, Tesla stock was up 4.5% at $248.62.
'Tariffs Are Tough,' but Tesla Is Least Affected, Musk Says
Tesla CEO Elon Musk weighed in on tariffs as well, indicating that while he doesn’t love the levies, the EV maker is in a good position to handle whatever President Donald Trump decides.
“Tariffs are tough on a company when margins are still low,” said Musk, adding he believes that Tesla is the least affected by tariffs among major auto makers. It manufactures all of the cars it sells in the U.S. domestically, and has localized its supplies of parts where it makes sense.
“The tariff decision is entirely up to the president of the United States…I will weigh in with my advice,” said Musk, adding he believes lower tariffs are generally a good idea.
Tariffs threaten billions of dollars in profits for the U.S. auto industry, according to Wall Street, auto executives, and economists. A tariff of 25% on imported cars and a 25% parts tariff are set to be implemented by early May.
By Al Root
April 22, 2025
