In a stunning announcement, tech mogul Elon Musk declared on Tuesday that his commitment to his political role will significantly decrease, shifting his focus back to Tesla—much to the relief of anxious investors.

During a call with investors, Musk revealed that he intends to devote more time to Tesla starting next month. His remarks follow a troubling report of a drastic 71% decline in the company's first-quarter profits, plummeting from $1.39 billion to just $409 million.

The Shift Away from Politics

Musk, who has been entangled in political undertakings, stated, "Starting next month, my time obligation to DOGE will drop significantly." The billionaire hinted that while he will still dedicate a couple of days each week to government matters, the bulk of his attention will be on steering Tesla through its current challenges.

His involvement with President Trump has drawn criticism and protests, which in turn have affected Tesla's stock. Indeed, the company's shares dipped nearly 50% from their peak in December, although they experienced a slight uptick of 4% in after-hours trading following Musk's announcement.

Facing Market Turmoil

Tesla's recent earnings report highlighted the company's struggles, noting that "uncertainty in the automotive and energy markets" and rapid trade policy changes could greatly impact demand and pricing. The struggling automaker noted that updates to its popular Model Y also contributed to their disappointing financial results.

Musk reassured stakeholders of Tesla’s commitment to innovate, stating, "We’re eager to expand our business model to include autonomous robots, leveraging our real-world AI expertise for diverse applications.” However, he cautioned that they are unable to forecast future performance due to ongoing trade uncertainties.

Public Perception and Political Backlash

Musk's dual roles have put him under pressure from both investors and the public. A recent CNBC survey revealed that 47% of respondents hold negative views about Tesla, while only 27% see the company positively—reflecting the political weight that has overshadowed the brand.

Analyst Daniel Ives explained, "Tesla has transformed into a political symbol worldwide, leading to diminished vehicle demand and making it a target for international tariffs, notably from China."

As Musk gears up to refocus on Tesla amid these turbulent times, all eyes will be on how effectively he can navigate the company back to profitability and restore investor confidence.