Elon Musk is stepping back from DOGE to spend more time at Tesla

• This post originally appeared in the Business Insider Today newsletter.
• You can sign up for Business Insider's daily newsletter here.

Good morning. We sat with 350 New York City lawyers as they strategized against President Donald Trump. There were calls for protests, op-ed writing, and lawsuits. Amid the anger and frustration, some hope broke through the noise.

In today's big story, Tesla's earnings report came with a big announcement: Elon Musk is stepping back from DOGE.

What's on deck

Markets: Gold is showing it's the top "safe-haven" asset.

Tech: No more filtered selfies. Instagram's new feature is forcing users to get Reel.

Business: Not even plushies are safe from the trade war.

But first, music to Tesla's ears.

If this was forwarded to you, sign up here.

The big story

Musk to step back from DOGE

All it took was Tesla's profits to plunge 71%. On Tuesday, the carmaker delivered a dismal first-quarter earnings report. Revenue was down 9% year over year, and vehicle deliveries dropped 13%.

Then came the earnings call and Musk's big announcement: "Starting next month, I will be allocating far more of my time to Tesla."

It was the news Tesla investors had been waiting to hear. The company's stock jumped 5% in after-hours trading.

At DOGE, Musk helped President Donald Trump gut the federal workforce through buyout offers to government employees, mass firings of probationary workers, and dismantling agencies like USAID.

All the while, Tesla appears to have paid the price. Its stock declined 41% year to date, and the Cybertruck became a political target.

But what if Musk's renewed focus on Tesla is too little, too late?

Following a report earlier this month that Musk could soon exit the White House, early Tesla backer Ross Gerber said that replacing Musk as CEO was one of the few ways the company could move forward: "I think the damage is done."

Musk's increased focus on Tesla wasn't the only announcement. We also got new details on the robotaxi rollout, a more affordable Tesla model, and a tariffs update. Here are BI's five big takeaways.

3 things in markets

1. Gold is proving to be the ultimate safe-haven investment. The precious metal touched a record-setting high of $3,506 midday Tuesday. Gold has soared nearly 30% this year, and it's a sign investors see the asset as a place to hide while the broader market stumbles.

2. Trump backs off Powell. The president said Tuesday he has no intention of firing Federal Reserve Chair Jerome Powell, despite wishing the Fed would cut interest rates. Stock futures and the dollar spiked following his comments.

3. What's next for the S&P 500. The abundance of noise in the stock market recently has investors dealing with elevated uncertainty and heightened volatility. To cut through it, LPL Research shared three clues for investors about what could happen next in the market.

3 things in tech

1. First, it was Microsoft. Now, it's Amazon? Some Wall Street analysts are concerned after new signs suggest Amazon Web Services may be pausing some data center deals. More broadly, the data center market could be entering a cooling phase after a frenzied couple of years.

2. Instagram's new feature shows your friends who you really are. "Blend" lets you and a friend see each other's suggested Reels feeds. It's great for low-effort DMing, and a long way from the highly manicured grids that once ruled the app. Get ready to get weird.

3. Advertising watchdog tells Apple: Be Siri-ous about your AI promises. The Better Business Bureau's ad division said Apple is going overboard with its Apple Intelligence marketing. It recommended taking it down a notch, especially with the most hyped-up features.

3 things in business

1. Your plushies aren't safe from tariffs. The trade war is coming for the cuddliest part of the influencer economy, leaving some creators in a pinch. Most lean on China for manufacturing, and they're racing to find workarounds.

2. Inside America's trailer park boom. Buying and flipping mobile homes can generate big, fast profits, and the barrier to entry is relatively low. It's attracting a new crop of entrepreneurs, many from very modest backgrounds.

3. Roblox's CEO on how the gaming platform will keep kids safe. Roblox is wildly popular with the under-13 crowd and needs to protect its young users from harmful content. In an interview with Peter Kafka, Roblox's CEO shared his vision — and why he wants parents to pitch in.

In other news

• An OpenAI exec says the company would buy Google's Chrome, if given the option.
• Trump's 'attack' on the IRS could cost the government $1 trillion, former Treasury Secretary says.
• A Zuckerberg-funded private school that championed DEI values and didn't charge tuition is closing.
• Google's multibillion-dollar search engine deal with Apple is at high risk in its monopoly case.
• Trump will revive penalties for student-loan borrowers who are behind on payments. Here's what to expect.
• Verizon blames government spending cutbacks for its poor phone subscriber numbers.
• Trump needs to strike some trade deals so people can 'start to plan,' says Goldman Sachs CEO David Solomon.
• Law firm that hired former Mueller prosecutors teams up with Trump Media to work on crypto.
• Read the exit memo by '60 Minutes' boss Bill Owens, who said he lost editorial independence.
• The birth rate went up in 2024 after a historic drop, driven by moms over 40.
• Five ways brands can delay or reduce tariff costs as de minimis comes to an end.

What's happening today

• Boeing, IBM, AT&T, and Chipotle report earnings.
• Pope Francis lies in state at St. Peter's Basilica in Vatican City.
• Federal Reserve Beige Book released.

The Insider Today team: Dan DeFrancesco, deputy editor and anchor, in New York (on parental leave). Hallam Bullock, senior editor, in London. Grace Lett, editor, in Chicago. Amanda Yen, associate editor, in New York. Lisa Ryan, executive editor, in New York. Ella Hopkins, associate editor, in London. Elizabeth Casolo, fellow, in Chicago.