Elon Musk shifts focus to Tesla as company profits plummet
Elon Musk announced that starting in May, he will primarily focus on managing Tesla, limiting his involvement in the Department of Government Efficiency (DOGE). This decision was made following the release of the company's financial results, which showed a 71 percent decrease in profit compared to the previous year.
Musk shared this change during a conference call with Tesla investors, where he summarized the financial results for the first quarter of 2025. The company reported a profit of $409 million, representing a 71% decline from the same period last year.
According to The New York Times, the company avoided a $500 million loss thanks to income from interest on financial holdings, including cryptocurrencies, and the sale of carbon credits to other companies.
During the first quarter of 2025, Tesla's deliveries dropped more than expected, marking their worst result since 2022. The company delivered 336,681 cars, which fell significantly below analysts' forecasts and was also lower than the deliveries from the first quarter of 2024.
The decline in the company's performance is partly attributed to the rapidly decreasing demand for Tesla cars, due both to competition from Chinese electric car manufacturers and the company's deteriorating image linked to the political activities of its owner.
Elon Musk on tariffs and politics
Elon Musk, who strongly supports Donald Trump, admitted that he advised the U.S. President to lower tariffs, even though their effects are less significant for Tesla.
While the company’s largest factory is located in Shanghai, Reuters reported a halt in the supply of certain parts from China. Musk emphasized that lower tariffs are beneficial for prosperity, but the decision ultimately belongs to the president.
He also stated that his work as the informal head of the team fighting bureaucracy is mostly completed. Starting in May, he plans to dedicate just one to two days a week to this role, as needed and if the president requests it.
