Elon Musk announced he would reduce his involvement in the Department of Government Efficiency to focus on Tesla, which experienced a 71% drop in net income. This decision sparked a 4% rise in Tesla's shares in after-hours trading. Musk's ties to Trump have received backlash, affecting sales, particularly in California, where Tesla's market share has dropped. The company's sales have also declined in China and Europe due to ongoing trade tensions. His reduced governmental role was partly dictated by federal rules limiting special government employees' terms.
Musk stated that he would spend ‘far more of my time to Tesla now’ since the establishment work of the Department of Government Efficiency is complete.
Tesla shares surged 4% in after-hours trading as Musk discussed his reduced role with the government, seen by analysts as a positive move for the embattled automaker.
The company's net income fell 71% in the last quarter, a significant drop attributed partly to backlash from Musk’s ties to Trump.
Musk reassured investors that he would still work a day or two per week on government matters, indicating an ongoing commitment despite changes.
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