(BFM Stock Exchange) – The director general of the car manufacturer specializing in electricity announced Tuesday evening that he was going to “significantly” reduce his presence within the Trump administration and further devote his time to the group. This delighted the market and overshadowed to sullen quarterly results.

As often with Tesla, Elon Musk’s words have had much more impact on the market than quarterly results.

During the conference call which followed the publication of the accounts of the car manufacturer specializing in electricity, its director general announced that it was going to take the distance from its functions within the Trump administration.

Elon Musk pilots the “DOGE”, a commission for government efficiency which does not constitute an official department in Washington. This commission recently hosted in federal expenses.

This role in the Trump administration worried investors, who feared that the billionaire abandons Tesla to focus on this function. Elon Musk’s political positions have also provoked around the world of hostile demonstrations towards Tesla or even acts of vandalism against vehicles or concessions.

But, at the conference call, Elon Musk said that he was going to “significantly” reduce the time he spends in Doge, from May. “I think the bulk of the work necessary to set up the Doge team and work with the government to put the finances of the house in order has been accomplished,” he said.

The leader will thus devote “much more (his) time to Tesla”, as soon as next month, he added.

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“Good news for shareholders”

This is exactly what the market needed to hear. “This is good news for shareholders, who have seen the damage caused to the brand by Musk’s off-piste policy, while wondering if their general manager still headed the Tesla ship,” said Stephen Innes of Spi.

“Let’s be clear: noisy diplomacy and Musk’s chainsaw in Washington may have scored points on the political level, but it has affected the Tesla brand where it hurts-in Europe, California and in the corners of the market where shareholders are concerned about the ESG (environment, social, governance, the extra-financial criteria, editor’s note”, continues the market specialist.

In a note written upstream of Tesla’s results, Dan Ives, analyst at Wedbush, called Elon Musk to leave Washington. “Musk must leave the Trump administration, take a big step back on Doge and become full-time Tesla director again,” he wrote. “Tesla, it’s Musk and Musk, it’s Tesla …. And if you think that the damage that Musk has inflicted on the brand are not real …. You should talk a little about car buyers in the United States, Europe and Asia … You will think differently after these discussions,” he said.

The analyst recalled that Tesla had “unfortunately” become “a political symbol” in the world linked to the Trump administration. Dan Ives estimated that 15% to 20% of the potential demand for Tesla vehicles had been destroyed by “brand damage” inflicted by Musk.

Musk’s disengagement in Washington was well received by Wall Street. The Tesla action climbed 5.4% in post-market exchanges.

Cybercab Tesla in June

Elon Musk’s declarations on his disengagement within the Doge have completely overshadowed quarterly results at half mast. Over the first three months of the year, the group had already announced a fall in its deliveries by 13%, while its sales suffer in Europe and China.

This drop in volumes resulted in a fall of 20% of its income from automotive activities and 9% of its total revenues that were registered with $ 19.34 billion. The operating profit plunged 66% to $ 399 million in the first quarter, while the operating margin fell at only 2.1% against 5.5% a year earlier. Action profit dropped from 40% to 27 cents.

Deutsche Bank stresses that the company has “largely” missed the expectations of analysts, which tabled on average on revenues of $ 21.37 billion and an operating profit of $ 1.13 billion.

Regarding his prospects, Tesla said that he would “revisit” her indications for 2025, when she was published in her second quarter results. The company previously was tabling on “a return to growth” for this year, which therefore may no longer be topical.

Tesla has confirmed that the production of “more affordable vehicles” would be launched in the first half of this year.

The production of “cybercab”, that is to say the group’s robotaxis, is planned for next year. First copies will run in June in Austin, Texas. Elon Musk estimated that around 10-20 vehicles would be launched on the first day.