Updates

** Tesla TSLA.O rises 3.3% to $245.71 in extended trading

** Billionaire CEO Elon Musk says he will scale back his government role starting in May

** Musk expects his time allocation to the cost-cutting Department of Government Efficiency initiative to drop significantly

** There has been significant backlash against his increased government involvement as an adviser to U.S. President Donald Trump, with investors calling for him to manage TSLA more closely

** TSLA beat first-quarter total gross margin estimates, offsetting weak Q1 revenue that missed analysts' estimates as EV sales dropped

** Total Q1 gross margin of 16.3% vs analysts' average estimate of 15.82% - data compiled by LSEG

** Co reported Q1 revenue of $19.34 billion vs estimates of $21.11 billion

** TSLA says it will revisit 2025 guidance in its second-quarter update, due to "shifting global trade policy" and difficulty in measuring its impact on co's cost structure

** Analysts' average rating for TSLA is "hold"; their median PT is $302.50 - LSEG

** TSLA down ~41.1% YTD

(Reporting by Arsheeya Bajwa in Bengaluru)

((ArsheeyaSingh.Bajwa@thomsonreuters.com; +91 8510015800;))