Surprisingly, after reporting negative Q1 2025 automotive and overall revenues yesterday, the Tesla (TSLA) stock price surged this morning.
As of this writing (around 3:45 PM ET, Wednesday), Tesla on NASDAQ is being traded at $251.20, which is a ~5.5% or +$13.17 increase compared to yesterday when the company released its first-quarter financials (PDF here). Elon Musk and other executives held the TSLA Q1 2025 Earnings Call and a Q&A session as well (listen below).
The next-day surge in Tesla’s share price shows investor confidence in the company’s overall business model and future prospects, like the Cybercab robotaxi and the Optimus humanoid robot.
Tesla (TSLA) and its boss Elon Musk acknowledged that the company’s electric vehicle sector which brings in most of the revenues, is facing headwinds. The reasons include the overall industry situation, global economics, tariff rifts, and Musk’s involvement in the US political.
Tesla explained these factors in its Q1 report as follows:
Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers.This dynamic, along with changing political sentiment, could have a meaningful impact ondemand for our products in the near-term. We remain committed to expanding our business model to include delivering autonomous robots across multiple form factors and use cases – powered by our real-world AI expertise – to our customers and for use in our factories, as we navigate these headwinds.
In the face of near-term profitability hurdles, the low-cost, localized manufacturing base that we have built provides advantages in delivering the best products at the right price to our customers globally. We continue to make critical, high-value investments while maintaining a strong balance sheet during this uncertain period.
As expected, Tesla CEO Elon Musk addressed the problems Tesla is facing due to his responsibilities with the US Department of Government Efficiency (DOGE) and ties with President Trump.
Musk addressed this issue in his opening remarks of the Q1 2025 Earnings Call, saying:
As people know, there’s ben some blowback for the time that I am spending in the government with the Department of Government Efficiency or DOGE. I think the work that we’re doing there is actually very important for trying to rein the insane deficit that is leading our country, the United States to destruction.
And the DOGE team has made a lot of progress in addressing waste and fraud. The natural blowback from that is those who were receiving the wasteful dollars and the fortune of dollars will try to attack me and DOGE team and anything associated with me.
Because if the ship of America goes down, we all go down with it, including Tesla and everyone else.
However, the main reason for the Tesla stock comeback today wasn’t the financial numbers or the company’s growth on the energy side of its business.
During his opening remarks of the Q1 2025 call, Elon Musk gave a piece of good news to Tesla investors. According to Musk, most of the work his DOGE team needed to perform is already done. As the next month (May) arrives, Elon Musk will be spending less time at DOGE and the White House and will be focusing more on Tesla.
He said the following during his opening remarks:
The large slug of work necessary to get the DOGE team in place and working with the government to get the financial house in order is mostly done.
And I think, starting probably in next month, May, my time allocation to DOGE will drop significantly.
I’ll have to continue doing it for I think, probably the remainder of the president’s term, just to make sure that the waste and fraud that we stopped does not come roaring back, which will do if it has the chance.
So, I think I’ll continue to spend, you know, a day or two per week, on government matters, or as long as the president would like me to do so and as long as it is useful. But starting next month, I’ll be allocating far more of my time to Tesla.
Update: Tesla (TSLA) closed at $250.74 on Wednedsay 23rd April 2025. This is an increase of $12.77 (+5.37%) compared to a day before.
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