Elon Musk, CEO of Tesla, has announced plans to reduce his involvement in Donald Trump’s administration after the electric carmaker faced a sharp decline in profits and revenues. This move comes after Tesla reported a 20% drop in automotive revenue during the first quarter of 2025, compared to the same period last year, with profits plummeting by over 70%. “Given the challenges Tesla is facing, it’s clear that my political involvement has taken my attention away from the company,” Musk said during a call with investors. "I’m going to cut back my time allocation to the Doge initiative signific
Elon Musk, CEO of Tesla, has announced plans to reduce his involvement in Donald Trump’s administration after the electric carmaker faced a sharp decline in profits and revenues. This move comes after Tesla reported a 20% drop in automotive revenue during the first quarter of 2025, compared to the same period last year, with profits plummeting by over 70%. “Given the challenges Tesla is facing, it’s clear that my political involvement has taken my attention away from the company,” Musk said during a call with investors. "I’m going to cut back my time allocation to the Doge initiative significantly, starting next month. I'll spend just one or two days per week on government matters, as long as the president finds it useful.” Musk’s political involvement, particularly his leadership role in Trump’s Department of Government Efficiency (Doge), has stirred protests and boycotts of Tesla worldwide. Musk contributed over $250 million to Trump’s re-election campaign and has worked on initiatives aimed at reducing government spending and workforce. But the backlash from these activities has led him to refocus on Tesla’s challenges. Tesla reported a total revenue of $19.3 billion for the quarter, a 9% decrease from the previous year. Analysts had expected $21.1 billion, and the company was forced to cut prices to attract buyers. Musk acknowledged the impact of Trump’s tariffs on Chinese imports, which have raised the cost of parts for Tesla vehicles. He stated, "The rapidly evolving trade policies could hurt our supply chain and impact demand for our products." In addition to political issues, Tesla is facing increasing competition in the electric vehicle market. According to investment analyst Dan Coatsworth, "Tesla’s problems are mounting. The drop in car sales and rising global tensions over trade policies pose significant risks." Musk has also had a tense relationship with Trump’s trade adviser, Peter Navarro, whom he called a "moron" earlier this month after Navarro criticized Tesla’s manufacturing processes. Musk responded by saying, "I’ll continue to advocate for lower tariffs, but that’s all I can do." Despite the challenges, Musk remains optimistic about Tesla’s future. He believes that artificial intelligence will play a key role in the company’s growth moving forward, although investors have been skeptical about this vision in the past. Shares in Tesla have fallen by 37% this year, but they rose 5% in after-hours trading following the latest quarterly results. Musk remains hopeful that with a renewed focus on the company, Tesla can navigate through these turbulent times. “I’m committed to getting Tesla back on track,” Musk said, “and my focus will shift entirely to the company in the coming months.” The original source of this news is BBC News
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