Musk Shifts Focus To Tesla, Rationing Time At DOGE According To Sacks

Elon Musk has shifted his attention from government roles to focus on Tesla, affecting stock performance positively. David Sacks discusses Musk’s reduced commitment to Dogecoin, stating Musk will still be involved but managing his time more sensibly. Tesla’s revenue has dropped, missing expectations, but stock prices have surged recently despite a year-to-date decline.

Elon Musk has recently altered his commitments, pulling back from the Department of Government Efficiency to focus primarily on Tesla. This shift has positively impacted Tesla’s stock, which saw a nearly 24% increase over the past five days. Meanwhile, David Sacks, who serves as Donald Trump’s AI and crypto czar, weighed in on Musk’s management changes in a recent podcast.

Musk announced during his company’s first-quarter earnings call that he would significantly decrease his involvement with Dogecoin, limiting it to one or two days per week. Sacks clarified that Musk is not fully disengaging from DOGE; instead, he’s reallocating his time to manage his responsibilities better. He likened Musk’s strategy to what he observed during the Twitter transition, where Musk initially focused intensely on setting up a capable team and later moved to a maintenance phase.

Musk’s role as a Special Government Employee restricts him to 130 days of service a year, prompting his decision to ration his days wisely. Despite the reduction in time at DOGE, Sacks believes Musk will remain actively involved. This change comes amid mixed reactions about Tesla’s financial performance; the automaker’s first-quarter revenue fell to $19.34 billion, a 9% year-on-year decline, missing Wall Street’s expectations.

After Musk’s announcement, Wedbush Securities’ Daniel Ives expressed a positive outlook, raising Tesla’s price target to $350 per share. However, others, like Ross Gerber, voiced concern over Tesla’s performance, deeming it the worst he has seen in over a decade of covering the company. Even with a recent surge in share prices, Tesla remains down nearly 25% year-to-date, highlighting ongoing uncertainty in investor sentiment. As of now, Tesla holds a growth score of 45.57%, according to recent rankings, reflecting its current market position.