Elon Musk announced on Tuesday that he would be scaling back his involvement in President Trump’s cost-cutting initiatives, leading to a surge in Tesla’s stock price despite a 71% decrease in net income for the quarter.

During a post-earnings call, Musk revealed that he would be reducing his time spent on the Department of Government Efficiency (DOGE) and focusing more on Tesla following the completion of his work with the government.

Despite facing public backlash and tough competition, Tesla’s shares rose 4% in after-hours trading as Musk reassured analysts of his commitment to the company and his continued efforts to combat waste and fraud in government.

As Musk prepares to step back from his government role, Tesla is looking to recover from a challenging period marked by declining sales in key markets and disruptions caused by trade policies and political affiliations.

While Tesla’s financial performance has been impacted by various factors, Musk remains optimistic about the company’s future and is determined to refocus on its core mission of advancing sustainable transportation and energy solutions.

Despite facing obstacles, Tesla’s energy business has shown growth, providing a glimmer of hope amid the overall revenue decline reported in the latest earnings release.

As Tesla navigates the uncertainties of global trade policies and supply chain disruptions, Musk’s decision to prioritize the company’s operations signals a new chapter in its journey towards long-term success.