Tesla Holds Bitcoin Firm as Musk Vows to Reduce His Government Duties

On April 22, following the release of its Q1 financials, Tesla (TSLA) saw a 5.4% surge in after-hours trading, closing the day with an earlier 4.6% gain. 

Share Price Bounces on Musk’s Promise to Refocus on Tesla

The sharp uptick came just hours after Musk told shareholders he would scale back his involvement with the Trump administration’s Department of Government Efficiency (DOGE).

Musk, who has been balancing his time between Tesla and his role as Trump’s so-called “cost-cutting czar,” said he plans to significantly reduce his government duties starting May. “The major work of setting up DOGE is done,” he told investors during the earnings call. “I’ll still give it a day or two each week, but Tesla is where I’ll be spending most of my time again.”

That pledge seemed to resonate with markets, which have been jittery over Musk’s political entanglements and Tesla’s declining performance in recent months.

Bitcoin Resilience Amid Financial Slump

Interestingly, despite a disappointing revenue print and shrinking profit margins, Tesla chose to hold steady on its Bitcoin position. The company’s digital asset holdings, primarily Bitcoin, dipped in value from $1.076 billion to $951 million in Q1 — mirroring Bitcoin’s 11.56% price decline over the same period. Yet, Tesla made no sales, continuing to sit on its 11,509 BTC stash, which it has held since mid-2022.

Thanks to a recent crypto market rebound, Tesla’s Bitcoin trove is now worth north of $1.07 billion again, according to Bitcoin Treasuries. Under new accounting standards from the Financial Accounting Standards Board, companies like Tesla can now report market gains on digital assets, offering a more accurate snapshot of holdings for shareholders.

Despite the momentary market optimism, the road ahead for Tesla remains fraught with challenges. The company reported $19.34 billion in Q1 revenue — nearly 8% below Wall Street expectations — and a staggering 80.8% drop in net income compared to the previous quarter. 

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