Tesla shares rose sharply after CEO Elon Musk said he would reduce his involvement in the Trump administration’s Department of Government Efficiency (DOGE) to spend more time at Tesla.
Following the announcement, Tesla stock (TSLA) climbed 5.4% in after-hours trading on April 22 to $250.80, after gaining 4.6% during the regular session, according to Google Finance.
The comments came during Tesla’s Q1 2025 earnings call, where the company reported $19.34 billion in revenue, falling short of Wall Street estimates by 7.85% and down 9.2% year-over-year. Net income plunged to $409 million—an 80.8% drop from the previous quarter and down 70.5% from the same period in 2024.
Despite the weak financials, investors appeared encouraged by Musk’s vow to scale back his government role.
“Starting probably next month, May, my time allocation to DOGE will drop significantly,” Musk said. “I’ll be allocating far more of my time to Tesla.”
He added that he expects to dedicate only “a day or two per week” to the government post going forward.
Tesla Keeps Bitcoin Holdings Steady in Q1
Tesla also reported no changes to its Bitcoin holdings, which remained at 11,509 BTC. The value of the holdings dropped by 11.61% from $1.08 billion to $951 million in Q1, mirroring Bitcoin’s price slide over the same period.
However, with Bitcoin rebounding in recent days, Tesla’s crypto stash is now worth over $1.07 billion, according to Bitcoin Treasuries.
A new accounting rule from the Financial Accounting Standards Board now allows public companies to mark crypto holdings to market, meaning Tesla can now reflect gains, not just losses, even without selling.
Tesla is currently the fourth-largest holder of bitcoin among publicly traded U.S. companies, following MicroStrategy, Marathon Digital Holdings, and Riot Platforms.
Tesla originally made waves in the cryptocurrency world in February 2021 by investing $1.5 billion into bitcoin. At its peak, the company held 43,000 bitcoins, though by Oct. 15, 2024, it reportedly retained only around 9,720 BTC, worth roughly $650 million. However, Arkham estimates that Tesla may hold as much as 11,509 BTC, across 68 addresses, worth $770 million at current prices.
Tesla hasn’t added to or sold any Bitcoin since June 2022.
Tesla stock remains down more than 37% year-to-date, hit by slumping sales, Musk’s political involvement, and broader economic pressures linked to Trump’s renewed tariffs.
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