Musk shifts focus to Tesla amid sharp profit decline

Elon Musk, an advisor to the President of the United States, stated that starting in May, he will limit his involvement in the State Efficiency Department to better manage Tesla.

Musk made this announcement during a conference call with Tesla investors, where the financial results for the first quarter of 2025 were discussed.

Tesla reported a $409 million profit in the first quarter of 2025, a 71% decrease compared to the same period last year. As reported by The New York Times, the company avoided a loss exceeding half a billion dollars due to interest income and the sale of carbon credits.

Musk acknowledged that Tesla is facing declining demand for its cars, attributed to competition from Chinese manufacturers and the company's negative public image. The billionaire also claimed that activists protesting against his activities are "paid."

Bloomberg reports that for 10 of the last 12 months, Tesla has experienced a decline in sales in Europe. In the first two months of the year, the brand's sales on the continent fell by 43%, while overall electric car registrations increased by 31%.

Recently, Tesla has become the target of protests in various cities in the USA and Canada. In Las Vegas, an incident occurred where a person dressed in black vandalized several Tesla vehicles at a repair shop. The FBI is investigating this case as a potential act of domestic terrorism.

Musk advised the President of the USA to lower tariffs, even though Tesla is less affected by them, because its largest factory is in Shanghai.

"I’ve been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity," said Musk, emphasizing that the decision lies with the president.