Elon Musk says he plans to devote more time to running Tesla, following a major drop in the company’s sales and profits during the first quarter of 2025. His announcement comes amid growing concerns about tariffs, Tesla’s market position, and Musk’s controversial involvement with the U.S. government through his DOGE teams.
Tesla’s Tough Start to 2025
On an earnings call Tuesday, Tesla reported that its total revenue from car sales dropped by 20% compared to the same period last year. Even more concerning, Tesla’s net income fell a staggering 71% during the first quarter.
In hard numbers, Tesla’s total revenue dropped to $19.3 billion, marking a 9% decrease compared to the first quarter of 2024. The company also reported that its operating income had fallen 66%, landing at just $0.4 billion.
Tesla said the downturn was largely due to fewer vehicle deliveries and lower selling prices for its electric vehicles.
Musk Says He’s Refocusing on Tesla
Addressing investors, Musk said,
“Starting next month, I will be allocating more of my time to Tesla,”
adding that he would still spend a day or two each week on government-related work as long as President Donald Trump needs him.
Musk didn’t specifically comment on whether his involvement in government matters — particularly through his DOGE data teams — had distracted him from Tesla or hurt the company’s performance. However, he admitted,
“There’s been some blowback for the time that I’ve been spending in government.”
DOGE (Data Operations for Government Efficiency) has been Musk’s initiative aimed at cutting waste and fraud in federal operations.
Tesla and Tariffs: A Complicated Relationship
Musk also touched on the tariff policies implemented by President Trump, which have caused major disruptions in the auto industry. Musk, a long-time opponent of high tariffs, said:
“I believe lower tariffs are generally a good idea for prosperity.”
Still, he stressed that Tesla is “the least affected car company with respect to tariffs,” mainly because of its diverse supply chains.
Musk acknowledged that while he will continue advocating for lower tariffs, the final decisions lie with elected officials.