Elon Musk shifts focus to Tesla as profits plunge by 70%

Elon Musk, advisor to the President of the USA, stated that starting in May, he intends to limit his involvement in the State Efficiency Department to focus on managing Tesla.

This decision was announced during a teleconference with Tesla investors, summarising the financial results for the first quarter of 2025.

Tesla recorded €392 million in profit for 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 pounds thanks to interest income and the sale of carbon credits.

Musk admitted that Tesla is struggling with decreasing demand for its cars, which is the result of competition from Chinese manufacturers and the company's negative image. The billionaire claimed that activists protesting against his activities are "paid."

Bloomberg reports that in 10 out of the last 12 months, Tesla recorded a drop in sales in Europe. In the first two months of the year, the brand's sales on the Old Continent decreased by 43%, while overall electric vehicle registrations increased by 31%.

Tesla has recently become a target of protests in various cities in the USA and Canada. In Las Vegas, an incident occurred where a person dressed in black destroyed several Tesla vehicles in a repair shop. The FBI is investigating this case as a potential act of domestic terrorism.

Musk advised the President of the USA to reduce tariffs, although Tesla is less exposed to their effects, even though its largest factory is 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, emphasising that the decision is up to the president.