As Tesla Profits Plummet 71%, Elon Musk Promises To Spend Less Time On DOGE

After Tesla reported that profits had plunged by 71%, CEO Elon Musk vowed to spend less time in his role at the Department of Government Efficiency (DOGE).

During a Tesla earnings call on April 22, Musk told Tesla investors he would scale back his work at DOGE to a day or two a week starting sometime in May.

Tesla dealerships have faced numerous incidents of vandalism protesting Musk.

“Starting next month, May, my time allocation to DOGE will drop significantly,” he said during the call.

However, he defended his work with DOGE, saying cutting back on “waste and fraud” was necessary as he encouraged investors to “look beyond the bumps and potholes immediately ahead of us.”

Tesla reported that its quarter fell short of forecasts and that the escalating trade war damaged its prospects for the rest of 2025.

Even though Tesla is less exposed to tariffs than most other automakers, it said it would have to reexamine its guidance due to current trade disputes.

“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,” the company stated.

Donald Trump implemented tariffs on auto imports on April 3 and vowed to impose more tariffs on parts later this year.

Tesla makes the cars it sells in the United States at American plants, but it does import parts for the cars it builds at its factories.

Musk did not blame Trump in particular for the uncertainty about trade policy, but he did try to distance himself from the president’s second administration on trade.

“The tariff decision is entirely up to the President of the United States,” the Tesla CEO stated. “I will weigh in with my advice. I’ve been on the record many times saying lower tariffs are a good idea for prosperity. I’ll continue to advocate for lower tariffs rather than higher tariffs. That’s all I can do.”

Tesla reported that its revenue fell 9%, and auto revenue fell 20%. Adjusted income plunged 39%, which was larger than initially foreseen. Its net income declined 71% compared to 2024.

The carmaker warned investors in early April that it suffered its biggest drop in sales in its history during the first quarter, delivering 50,000 fewer vehicles than in the same period last year.

The sales plunge indicated that Tesla recorded its lowest sales in almost three years.

The CEO claimed, without providing any proof, that protesters had been speaking out because they were receiving the “waste and fraud” that he said DOGE had been eliminating.

He also defended the work of DOGE as the right thing for the U.S. and his company.

“I think the right thing to do is fight the waste and fraud and try to get the country back on the right track,” he declared. “If the ship of America goes down, Tesla will go with it.”

Tesla shares almost doubled between Election Day and a record high in mid-December 2024, hoping the then-incoming administration would implement Tesla-friendly policies. But the stock soon lost all of that post-election gain, having fallen 50% from its high to the end of trading Tuesday.

Despite this, the company said it still plans to come out with “more affordable models” by the end of June, but its listing of capacity for its various models and plants does not ensure any production of such a model for the rest of the year.

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Article by Admin