Tesla CEO Elon Musk said Tuesday he will significantly reduce his involvement in Donald Trump’s administration following a sharp drop in Tesla’s revenue and profit during the first quarter of 2025.
The electric vehicle maker reported a 20% decline in automotive revenue and a 70% plunge in profit year-on-year.
The company cited weakening demand, political backlash, and escalating trade tensions as key contributors to the downturn.
It declined to offer a growth forecast, warning that “changing political sentiment” could further impact sales.
Musk, who heads Trump’s Department of Government Efficiency (DOGE), said he would cut his government role to just one or two days a week beginning next month.
“The large slog of work to get the DOGE team in place is mostly done,” Musk said, adding that he would continue serving “as long as it’s useful.”
His political engagement—including a $250 million donation to Trump’s reelection—has drawn widespread protests and calls to boycott Tesla products.
Critics say Musk’s divided focus has hurt the company, while vandalism and demonstrations have erupted at Tesla showrooms worldwide.
Tesla reported $19.3 billion in revenue for Q1, falling short of the $21.1 billion expected by analysts.
The company blamed Trump’s tariffs on Chinese goods for straining its supply chain and increasing production costs.
Despite these challenges, Tesla shares rose over 5% in after-hours trading after Musk reassured investors the company was still focused on producing an affordable EV.
He also reiterated his support for lower tariffs and hinted that artificial intelligence would drive future growth.
Musk’s move to refocus on Tesla comes amid stiff competition, a shrinking EV market, and internal investor pressure to stabilize performance.
