Elon Musk shifts focus back to Tesla amid profit slump
Elon Musk announced that starting in May, he will focus primarily on managing Tesla, reducing his involvement with the Department of Government Efficiency (DOGE). This decision follows the publication of the company's financial results, which revealed a 71 percent decrease in profits compared to the previous year.
Elon Musk's decision was disclosed during a conference call with Tesla investors, where he summarised the financial results for the first quarter of 2025. The company reported a profit of £335 million, representing a 71 percent decline compared to the same period last year.
According to The New York Times, the company avoided a loss of €479.7 million through income from interest on financial holdings, including cryptocurrencies, and the sale of carbon credits to other companies.
Tesla's deliveries in the first quarter of 2025 dropped more than anticipated, marking their poorest outcome since 2022. The company delivered 337,000 cars, which is significantly below analysts' predictions and also falls short of the figure from the first quarter of 2024.
The downturn in the company's performance is partly attributed to the rapidly declining demand for Tesla vehicles, which is influenced by both competition from Chinese electric car manufacturers and the company's deteriorating image linked to the political activities of its owner.
Elon Musk on tariffs and politics
The owner of the electric car manufacturer, who is a strong supporter of Donald Trump, admitted to advising the U.S. President to lower tariffs, even though Tesla is less significantly affected by them.
The company’s largest factory is in Shanghai, and Reuters reported a stoppage in the supply of certain parts from China. The billionaire emphasised that lower tariffs are beneficial for prosperity, but ultimately, the decision lies with the president.
Musk also mentioned that his role as the informal leader of the team combating bureaucracy is largely concluded. Starting in May, he intends to devote just one or two days a week to it, as required and if the president desires his involvement.
