Tesla investors react positively to Musk pledge to step back from U.S. government role [Video]

Tesla shares rose three per cent in Wednesday in early trading after Elon Musk said he would spend less time working for the U.S. administration, kindling hopes that the billionaire CEO would devote more time to the struggling EV maker’s brand and sales.

Musk’s participation in the Department of Government Efficiency, or DOGE, where he emphasized aggressive cost savings through federal job cuts has caused fierce public and political backlash, leading to a series of legal challenges, as well as protests and vandalism at Tesla showrooms.

Musk acknowledged the blowback in a conference call with analysts Tuesday but brushed off concerns that the brand damage was behind the steeper-than-expected 25 per cent decline in Tesla’s first-quarter auto sales and a 71 per cent plunge in overall net profit.

Musk said he would cut back his work for President Donald Trump to a day or two per week from sometime next …