Elon Musk shifts focus to Tesla after profit dive

• Elon Musk announced that starting in May, he will be less involved with the Department of State Efficiency and more focused on Tesla.
• Tesla experienced a 70% drop in profits in the first quarter of 2025, influencing Musk's decision.
• Musk advised the U.S. president to lower tariffs, despite Tesla having a factory in Shanghai.

During a conference call with Tesla investors, Musk stated that his informal role in leading efforts to cut costs and simplify bureaucracy has largely been completed. Starting in May, he'll dedicate only one to two days a week to the activities within the Department of State Efficiency (DOGE), and only for as long as his presence is needed and desired by the president.

The billionaire also announced that from now on, he will concentrate on leading Tesla, which is facing significant challenges. In the first quarter, the company achieved a profit of $409 million—down 71% from the previous year. As noted by "The New York Times," without revenue from interest and sales of carbon credits, Tesla would have incurred a loss exceeding half a billion dollars.

The worsening of the company's results is influenced by declining demand for Tesla's electric cars, growing competition from Chinese manufacturers, and image issues resulting from Musk's political involvement.

Musk has admitted that he faces criticism, but claims that many activists protesting against his company are "paid." He also noted that he advised the president to lower tariffs, though he believes Tesla is less affected by them—even though the company's largest factory is in Shanghai, and Reuters recently reported disruptions in the supply of some components from China.

"I've been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity but this decision is fundamentally up to ... the president of the United States. I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do," said Musk.