Hundreds of protests at Tesla showrooms have also weighed on the company. Under the banner of a “Tesla Takedown,” opponents of Musk and Trump’s government policies have targeted the company to try to gain leverage over Musk, and demonstrators have continued to swarm Tesla locations, especially on weekends.

Tesla CEO Elon Musk said he will push for lower tariffs as he steps back from his role in the Trump administration during Tesla's earnings call.

Tesla shares rose 6.5% in Frankfurt on Wednesday, after it reported profitability for its core auto business topped rock-bottom expectations in the first quarter, although it missed on other metrics such as revenue and net profit.

Tesla reported a first-quarter earnings miss after Tuesday's closing bell, and MarketWatch broke down the results and followed along the post-earnings call. The miss seemed irrelevant for the stock, which rallied nearly 5% as investors cheered news that Chief Executive Elon Musk is expecting to spend more time at the EV maker and less time on DOGE starting next month.

Cathie Wood thinks Tesla stock can rise 10-fold during the next five years. The company is struggling to sell cars at the moment and has no new commercially viable products on the horizon. Investors would be wise to stay away from the stock due to its high price-to-earnings ratio.