Typically, this would result in a sharp decline in investor confidence and share prices. Tesla’s share prices have indeed dropped over 40% this year. But after the earnings report, Tesla’s stock rallied when CEO Elon Musk vowed to scale back his involvement with the US Department of Government Efficiency (Doge) and focus on Tesla instead.

Elon Musk's foray into politics has stoked protests and fears of damage to the Tesla brand. Here's how Musk has fared early in Trump's second term.

I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do,” Musk said about Trump’s tariffs.