Musk to reduce DOGE role and refocus on Tesla amid falling sales and protests
Tesla is holding Bitcoin despite Q1 drop as valuation rebounded with new FASB rule benefits
Tesla opted to retain its Bitcoin [BTC] holdings through the first quarter of 2025. This, despite CEO Elon Musk announcing plans to step back from his prominent role in the Trump administration’s cost-cutting efforts.
Musk, who has been spearheading the Department for Government Efficiency (D.O.G.E.), revealed he would be scaling back his involvement with the agency to refocus on Tesla after a sharp downturn in the company’s profits and sales.
There have been growing concerns that his political commitments were affecting the automaker’s performance. Hence, Musk assured shareholders that his government-related duties would be limited to just one or two days a week going forward.
The move comes on the back of global protests and boycotts targeting Tesla, underscoring the backlash to Musk’s dual roles in business and politics.
Impact on Tesla’s stock price
Tesla’s Bitcoin strategy continues to draw attention as the firm’s digital asset portfolio saw an 11.61% decline in value during Q1 2025, falling from $1.076 billion to $951 million. This drop closely mirrored Bitcoin’s 11.56% price dip to $82,514, according to CoinGecko.
At the time of writing though, Bitcoin seemed to be on an uptrend, with the crypto trading at $93,698 after a hike of 5.26% in 24 hours.
Despite the downturn, however, Tesla held firm on its crypto positions, maintaining its 11,509 BTC stash unchanged since June 2022.
Interestingly, the company’s valuation rebounded swiftly, with the Bitcoin holdings now estimated at over $1.07 billion following a market recovery last week.
This marks one of the first quarters under the new Financial Accounting Standards Board (FASB) rule. It permits public companies to value their crypto assets at fair market value – A shift from the previous requirement that only allowed impairment losses to be reported unless assets were sold.
Notably, Elon Musk’s announcement appeared to fuel renewed investor optimism, contributing to a 5.4% after-hours surge in Tesla’s share price to $250.80 on 22 April.
At press time, it was trading at $237.97 after a hike of 7.27% at the close of trading day.
His previous promises
During 22nd April’s earnings call, Musk assured investors that his involvement with the Trump administration would be significantly reduced from May.
With the foundational work of the department largely complete, he emphasized a return to focusing on Tesla’s core operations. All, while continuing to support DOGE initiatives just one or two days a week to ensure long-term oversight.
Elon Musk’s sway over Dogecoin [DOGE]’s market movements is well-documented too, with his tweets historically triggering rapid price swings.
However, in a rare moment of clarity, Musk recently distanced both himself and the U.S. government from the memecoin’s future.
Despite his close ties to President Trump and his influential role in the Department for Government Efficiency, Musk made it clear that there are no government plans to adopt Dogecoin. This signaled a more restrained stance amid ongoing speculations within the crypto community.
