Elon Musk announced his decision to reduce his Trump administration participation after Tesla experienced a major decline in first-quarter financial results. The electric vehicle giant experienced a 20% decrease in automotive revenue, and its profits fell by more than 70% when compared to the same period in 2024. Revenue numbers for the period reached $19.3 billion, which fell short of the predicted $21.1 billion.
Musk’s political activities face increasing criticism during this time of financial decline at Tesla. Musk serves as the Department of Government Efficiency (Doge) director after helping Trump secure his re-election through financial support. The rising criticism, together with worldwide boycotts, has made Musk reduce his involvement in political activities.
From next month onwards, Musk plans to dedicate his time to Tesla while working at Doge for no more than two days per week. Musk declared that the government restructuring process has reached its main objectives but continued to emphasize the importance of his work at Doge.
The company Tesla identified both political distractions led by Musk and geopolitical issues as main contributors to its business decline. The U.S. assembly of Tesla vehicles has not shielded the company from Trump’s China trade tariffs, which increased production expenses. The changing trade environment combined with political sentiment shifts could potentially affect future market demand, according to Tesla’s warning.
Georg Ell, who previously worked at Tesla, noted that Musk should dedicate his attention to his business ventures. The company achieves exceptional outcomes whenever Elon concentrates on his work, according to him.
Investors remain cautious. The stock market value of Tesla declined by 37% this year until investors showed a slight rebound after the company released its financial results. AI represents an expected element for future growth, yet doubts about its effectiveness continue to develop.
The intensified market competition and rising trade tensions create conditions where Musk’s strategic focus might become essential for guiding Tesla through challenging periods.
