Musk shifts focus to Tesla as profits slump 70%
Elon Musk announced that starting in May, he will spend less time on the activities of the State Efficiency Department and focus instead on managing Tesla. This decision was made after Tesla's profits fell by 70% in the first quarter of 2025.
Elon Musk, advisor to the President of the USA, stated that starting in May, he plans to limit his involvement with the State Efficiency Department to focus more on managing Tesla.
This decision was announced during a conference call with Tesla investors, summarizing the financial results for the first quarter of 2025.
Tesla reported a $409 million profit in the first quarter of 2025, a 71% decrease compared to the same period last year. As noted by The New York Times, the company avoided a loss exceeding half a billion dollars thanks to interest income and the sale of carbon credits.
Musk admitted that Tesla is struggling with declining car demand, which is a result of competition from Chinese manufacturers and the company's negative public image. The billionaire stated that activists protesting against his activities are "paid."
Bloomberg reports that in 10 of the last 12 months, Tesla experienced a decline in sales in Europe. In the first two months of the year, the brand's sales in Europe decreased 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 damaged several Tesla vehicles in a repair shop. The FBI is investigating this case as a potential act of domestic terrorism.
Customs policy and advice to the president
Musk advised the President of the USA to lower tariffs, even though Tesla is less affected by them, despite its largest factory being located 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.
