Elon Musk says he will shift focus back to Tesla and reduce his involvement in government affairs after the company reported a 71% drop in profits and a 9% fall in revenue in Q1.

Axar.az reports that Musk promised to spend more time at Tesla starting in May, following criticism over his leadership of the Department of Government Efficiency (DOGE).

Investors welcomed the shift, sending Tesla shares up 5% in after-hours trading, though they remain down over 40% this year. Musk reaffirmed plans to launch a cheaper Model Y and a robotaxi service in Austin by June, with full autonomy expected later this year—claims analysts doubt due to safety concerns and ongoing federal investigations into Tesla’s driver-assistance systems.

Tesla also faces rising competition from Chinese and European EV makers and backlash over Musk’s political positions. Tariffs and China’s retaliation are expected to impact Tesla’s energy and vehicle businesses. Despite the profit plunge, Tesla posted positive cash flow and increased revenue from regulatory credit sales.