The richest person in the world became much richer on Wednesday when the actions of the Automotive Company of Elon Musk shot after the update of the profits of the company’s first quarter, which offered little stimulus in its traditional financial results, but gave investors what they longed for for a long time: Musk returning to commit to Tesla after months of paying all their attention to the White House.
Key data
Musk’s net assets increased $ 9.6 billion to 371.3 billion dollars on Wednesday, according to our last calculations, expanding its advantage over the next richest person, the founder of Amazon, Jeff Bezos, to 170,000 million dollars.
The increase occurred when Tesla shares fired 7% to $ 255 in the opening of the market in response to its report of the first quarter on Tuesday night, which was ugly according to most metrics, since the profits and income were below the consensus forecasts in minimums of several years.
Tesla certainly received an impulse from a broader rebound linked to the assignment of President Donald Trump of his commercial confrontation with China and his threats to fire the president of the Federal Reserve, Jerome Powell (the Nasdaq, with a strong technological component, rose 3 %), but the rebound occurred largely when Musk confirmed his dedication to Tesla.
“Mea Culpa Elon,” was the tone adopted by the Tesla Chief at the Conference on Profit, said Evercore ISI analysts led by Chris McNally, while Musk said that “he will dedicate much more” of his time to the company starting next month.
That was music for the ears of many investors and analysts who had expressed their concerns about the extensive time that Musk spent as head of the Government Efficiency Department (Doge) and the damage associated with the Tesla brand, since Musk’s open policy irritated many potential clients.
In addition to the renewed dedication of Musk to Tesla, the confirmation of the launch plans of the “Robotaxi” without driver and the beginning of the production of electric vehicles of lower cost during the first half of this year, according to Guggenheim Ronald Jewsikow’s analyst.
Read more: EU has up to 45% chance of tariff recession: Citigroup economist
Musk says that he will not abandon the White House completely
“I will continue to dedicate one or two days a week to government affairs during the time that the president wants to do so,” Musk said during the presentation of results on Tuesday.
Musk criticizes Trump’s tariffs
Musk described Tesla as the “less affected automotive company” by Trump’s tariffs, but the president’s main advisor made his disagreement with Trump clear about his emblematic commercial policy. “I have publicly said many times that I think that lowering tariffs is, in general, a good idea for prosperity,” said Musk, and continued to affirm that the decision on tariffs “depends fundamentally on” Trump. “So I will continue to advocate lower tariffs instead of higher tariffs, but that’s all I can do,” Musk replied shrugged.
Key history
Tesla’s actions still accumulate a fall of almost 40% so far this year, much worse than the 8% drop of S&P 500, since Trump’s changing tariffs increased concern for a recession. Musk donated 288 million dollars to Trump’s electoral causes, which made him Vandalism In addition to its functions in Doge and Tesla, Musk is also the executive director of the Spacex Aerospace giant, the XAI generative artificial intelligence startup and several other companies. Tesla faced a situation of “Red Code” if Musk did not commit to the company, warned Wedbush, Dan Iives, before the profits.
This article was originally published by Forbes Us.
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