(Zero Hedge)—In a candid call with analysts on Tuesday, Elon Musk announced that he will begin scaling back his involvement with the federal government starting in May, signaling a shift in priorities back toward Tesla. As a result, Tesla shares were up 5% late in the after hours session.
“I think starting probably next month, May, my time allocation to DOGE will drop significantly,” Musk said.
Musk has been a central figure in the effort to streamline the federal government under the Trump administration through an initiative he dubbed the “Department of Government Efficiency,” or DOGE. That effort has involved an aggressive reduction of federal workforce levels, targeting DEI programs, and a broad reorganization of agency resources.
Despite growing protests against Tesla and Musk’s role in Washington, he remains unapologetic. “The work with DOGE is critical,” he stated, while dismissing the backlash as “organized and paid for.”
Although the billionaire entrepreneur holds the title of “special government employee”—a designation that legally limits him to 130 days of federal work per year—his presence in the capital has been nothing short of influential.
Musk indicated that the heavy lifting to establish DOGE is “mostly done,” allowing him to reallocate his schedule. “I will spend ‘a day or two’ per week on government matters if President Trump wants me to,” he said, but emphasized that more of his attention will now return to Tesla.
Despite his pullback from the capital, Musk said he will “continue to advocate for lower tariffs, rather than higher tariffs,” noting that this is the extent of his ongoing engagement on trade policy.
Tesla remains the only publicly traded firm among Musk’s sprawling portfolio, which includes SpaceX, Neuralink, XAI, and The Boring Company. As such, it has absorbed much of the public response—both praise and criticism—related to Musk’s deepening political ties.
Yet, the CEO expressed confidence in Tesla’s direction. “I remain extremely optimistic about Tesla’s future,” he said, pointing to the company’s ambitions in autonomous vehicles and humanoid robots.
He reiterated his forecast that Tesla will become the most valuable company in the world, noting that robotaxis are expected to deliver a meaningful financial impact by mid-2026. He also revealed that Tesla aims to have thousands of its Optimus humanoid robots operational in factories by the end of the year, with plans to scale to one million units annually within five years—a pace he described as faster than any product in the company’s history.
Closing the call with idealism, Musk said, “I like this phrase sustainable abundance for all,” and affirmed his commitment to continue leading Tesla through its next phase of innovation and expansion.
Tesla reported earnings after the market closed that were worse than analyst expectations. The stock, with most of the bad news seemingly already priced in, held its ground in after hours trading. The results were:
- Revenues $19.34BN, big miss to estimates of $21.37BN
- EPS 27c, missing estimates of 43c
- Gross margin 16.3% (down from 17.4% y/y), and beating estimates of 16.1%
- Automotive gross margin ex reg credits 12.5%, beating estimates of 11.9%
- Operating income $399 million, -66% y/y, missing estimates of $1.13 billion
- Free cash flow $664 million (vs. negative $2.53 billion y/y) missing estimate $1.08 billion
- Capital expenditure $1.49 billion (down -46% vs $2.77Bn y/y and down 47% vs $2.78BN Q/Q), missing estimates of $2.49 billion
Of note, Tesla eked out positive free cash flow number by slashing capex almost in half compared with the prior quarter and a year ago. Absent that, it would have burned cash.
Tesla offered a measured outlook during its earnings report, signaling that it will revisit its 2025 guidance in the Q2 update, while notably omitting any concrete forecast for a return to growth. The company emphasized that its rate of growth will hinge on a range of variables, including global trade policy, which it admitted is difficult to quantify in terms of impact.
Tariffs, in particular, are expected to weigh more heavily on the company’s energy unit than its automotive business, with Tesla cautioning that the broader tariff landscape could have a larger effect on demand and operational strategy. Nevertheless, the company maintained that actions are being taken to stabilize performance over the medium to long term, and it expressed confidence in having sufficient liquidity to fund its product roadmap.
Tesla confirmed that plans for new, more affordable vehicle models remain on track for production in the first half of 2025, though it acknowledged that these models may lead to less dramatic cost reductions than previously expected. Even with trade headwinds, the company reiterated a growing need for energy storage solutions across markets.
Read our full earnings wrap up here.
Why One Survival Food Company Shines Above the Rest
Let’s be real. “Prepper Food” or “Survival Food” is generally awful. The vast majority of companies that push their cans, bags, or buckets desperately hope that their customers never try them and stick them in the closet or pantry instead. Why? Because if the first time they try them is after the crap hits the fan, they’ll be too shaken to call and complain about the quality.
It’s true. Most long-term storage food is made with the cheapest possible ingredients with limited taste and even less nutritional value. This is why they tout calories so much. Sure, they provide calories but does anyone really want to go into the apocalypse with food their family can’t stand?
This is what prompted the Llewellyns to launch Heaven’s Harvest. They bought survival food from multiple companies and determined they couldn’t imagine being stuck in an extended emergency with such low-quality food. They quickly discovered that freeze drying food for long-term storage doesn’t have to mean sacrificing flavor, consistency, or nutrition.
Their ingredients are all-American. In fact, they’re locally sourced and all-natural! This allows their products to be the highest quality on the market, so good that their customers often break open a bag in a pinch to eat because they want to, not just because they have to due to an emergency.
At Heaven’s Harvest, their only focus is amazing food. They don’t sell bugout bags, solar chargers, or multitools. They have one mission – feeding Americans in times of crisis.
What they DO offer is the ability for people to thrive in times of greatest need. On top of long-term storage food, they offer seeds to help Americans for the truly long-term. They want them to grow their own food if possible which is why they offer only Heirloom, Non-GMO, Non-Hybrid, Open-Pollinated seeds so their customers can build permanent food security on their own property.
