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| Musk signals 'significantly' stepping back from Doge as Tesla profits plunge | Musk signals 'significantly' stepping back from Doge as Tesla profits plunge |
| (about 2 hours later) | |
| Tesla boss Elon Musk says he will cut back his role in the Trump administration as the company's profits and revenues plunged during the first three months of the year. | |
| Sales slumped and the brand has faced backlash as Musk became a political fixture in the White House. | |
| On Tuesday, the firm reported a 20% drop in automotive revenue in the first quarter of 2025, compared to the same period last year, while profits fell more than 70%. | |
| The company warned investors that the pain could continue, declining to offer a growth forecast while saying "changing political sentiment" could meaningfully hurt demand. | The company warned investors that the pain could continue, declining to offer a growth forecast while saying "changing political sentiment" could meaningfully hurt demand. |
| The recent dip in the company's fortunes comes amid outcry over Musk's role in President Donald Trump's new administration, which Musk acknowledged has taken his focus off the company. | The recent dip in the company's fortunes comes amid outcry over Musk's role in President Donald Trump's new administration, which Musk acknowledged has taken his focus off the company. |
| Musk contributed more than a quarter of a billion dollars to Trump's reelection. He also leads Trump's Department of Government Efficiency (DOGE) initiative to cut federal spending and slash the government workforce. | Musk contributed more than a quarter of a billion dollars to Trump's reelection. He also leads Trump's Department of Government Efficiency (DOGE) initiative to cut federal spending and slash the government workforce. |
| Musk's political involvement has sparked protests and boycotts of Tesla around the world. | Musk's political involvement has sparked protests and boycotts of Tesla around the world. |
| He said the "blowback" comes from people who "will try to attack me and the Doge team". But he called his work at Doge "critical" and said "getting the government house in order is mostly done." | He said the "blowback" comes from people who "will try to attack me and the Doge team". But he called his work at Doge "critical" and said "getting the government house in order is mostly done." |
| Tesla brought in $19.3bn (£14.5bn) in total revenue in the quarter, down 9% year-on-year, according to the new numbers. That was less than the $21.1bn expected by analysts, and came as the company cut prices in a bid to woo buyers. | Tesla brought in $19.3bn (£14.5bn) in total revenue in the quarter, down 9% year-on-year, according to the new numbers. That was less than the $21.1bn expected by analysts, and came as the company cut prices in a bid to woo buyers. |
| Musk's "time allocation to Doge will drop significantly" starting in May, he said, adding that he will spend only 1 to 2 days per week on government matters "as long as the president would like me to do so and as long as it's useful." | Musk's "time allocation to Doge will drop significantly" starting in May, he said, adding that he will spend only 1 to 2 days per week on government matters "as long as the president would like me to do so and as long as it's useful." |
| Trump's tariffs on China also weighed heavily on Tesla, the company indicated. Although the vehicles Tesla sells in its home market are assembled in the US, it depends on many parts made in China. "Rapidly evolving trade policy" could hurt its supply chain and raise costs, according to the company. | Trump's tariffs on China also weighed heavily on Tesla, the company indicated. Although the vehicles Tesla sells in its home market are assembled in the US, it depends on many parts made in China. "Rapidly evolving trade policy" could hurt its supply chain and raise costs, according to the company. |
| "This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term," Tesla's quarterly update said. | "This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term," Tesla's quarterly update said. |
| Musk has clashed on trade with other Trump administration figures, including trade adviser Peter Navarro. | Musk has clashed on trade with other Trump administration figures, including trade adviser Peter Navarro. |
| The recent reversal of the company's fortunes comes amid outcry over Musk's role in the Trump administration | The recent reversal of the company's fortunes comes amid outcry over Musk's role in the Trump administration |
| Earlier this month, he called Navarro a "moron" over comments Navarro made about Tesla. Navarro had said Musk is "not a car manufacturer. He's a car assembler, in many cases." | Earlier this month, he called Navarro a "moron" over comments Navarro made about Tesla. Navarro had said Musk is "not a car manufacturer. He's a car assembler, in many cases." |
| On Tuesday, Musk said he thinks Tesla is the car company least affected by tariffs because of its localized supply chains in North America, Europe and China, but he added that "tariffs are still tough on a company where margins are low." | On Tuesday, Musk said he thinks Tesla is the car company least affected by tariffs because of its localized supply chains in North America, Europe and China, but he added that "tariffs are still tough on a company where margins are low." |
| "I'll continue to advocate for lower tariffs rather than higher tariffs but that's all I can do," he said on Tuesday. | "I'll continue to advocate for lower tariffs rather than higher tariffs but that's all I can do," he said on Tuesday. |
| Tesla said artificial intelligence would contribute to future growth, though investors have been unconvinced by such arguments in the past. | Tesla said artificial intelligence would contribute to future growth, though investors have been unconvinced by such arguments in the past. |
| Shares in the company shed about 37% of their value this year, as of market close Tuesday. They rose by more than 5% in after-hours trading following the results. | |
| Dan Coatsworth, investment analyst at AJ Bell, called expectations "rock-bottom" after the company said earlier this month that the number of cars sold in the quarter fell 13%, to the lowest level in three years. | Dan Coatsworth, investment analyst at AJ Bell, called expectations "rock-bottom" after the company said earlier this month that the number of cars sold in the quarter fell 13%, to the lowest level in three years. |
| The firm faces fierce competition, Mr Coatsworth said, warning that potential disruption to global supply chains as a result of Trump's trade war also creates risks. | The firm faces fierce competition, Mr Coatsworth said, warning that potential disruption to global supply chains as a result of Trump's trade war also creates risks. |
| "Tesla's problems are mounting," he said. | "Tesla's problems are mounting," he said. |