Elon Musk Sacrifices DOGE To Save Tesla
Tesla slips, bitcoin holds firm, and Elon Musk is divided. While the company is going through a tough quarter, its iconic CEO is trying to juggle leading Tesla, managing a strategic crypto portfolio, and his new governmental roles with Donald Trump. Between a drop in profits, a committed loyalty to BTC, and a promise of partial withdrawal from DOGE, Musk is operating on multiple fronts. But at what cost to Tesla?
In Brief
- Tesla retains its 11,509 bitcoins despite an 11.61% decrease in their value in Q1 2025.
- Tesla reports a 70.5% drop in net profit and a 9.2% decline in revenue.
- Elon Musk announces a partial withdrawal from governmental roles to refocus on Tesla.
- The market welcomes this decision; Tesla stock rebounds 5.4% in after-hours trading on April 22.
Tesla remains faithful to bitcoin despite volatility
In the first quarter of 2025, Tesla retained all of its 11,509 bitcoins. Although the value of its digital assets dropped by 11.61% — falling from $1.076 billion to $951 million — the company made no sales.
Thanks to the recent BTC rebound above $92,000, Tesla’s crypto holdings are now valued at over $1.07 billion. This choice reaffirms Elon Musk’s strategic commitment to bitcoin, which he still considers a long-term reserve asset.
Financial results sharply decline!
Tesla published disappointing results for the first quarter. Revenue reached $19.34 billion, down 9.2% year-over-year and below analysts’ forecasts. Net profit plunged 70.5% compared to the same period in 2024, reaching only $409 million.
This underperformance adds to a 37% decline in Tesla’s stock since the start of the year. The fall in global sales, increased competitive pressure, and uncertainties related to customs policies have heavily weighed on the results.
Elon Musk between Tesla and Trump’s politics
During the April 22 investor call, Elon Musk announced he would significantly reduce his involvement in DOGE — the Department of Government Efficiency, an initiative of the Trump administration. Musk played a key role there in combating public waste.
Starting in May, he plans to devote more time to Tesla while dedicating “one or two days a week” to governmental affairs. This refocus on the company was welcomed by the markets, contributing to Tesla stock rising 5.4% in after-hours trading.
As Tesla tries to recover from a disappointing quarter, Elon Musk is banking on strategic refocus and the stability of BTC to reassure the markets. The question remains whether this balance between political ambitions and industrial commitments will be enough to revive the Californian giant’s momentum.
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The world is evolving and adaptation is the best weapon to survive in this undulating universe. Originally a crypto community manager, I am interested in anything that is directly or indirectly related to blockchain and its derivatives. To share my experience and promote a field that I am passionate about, nothing is better than writing informative and relaxed articles.
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.