Musk shifts focus to rescue Tesla amid profit plunge
Elon Musk announced that starting in May, he will dedicate less time to the Department of State Efficiency, choosing instead to focus on managing Tesla. This decision follows a 70% decline in Tesla's profits during the first quarter of 2025.
What do you need to know?
- Elon Musk has revealed he will reduce his involvement with the Department of State Efficiency from May onwards to concentrate on Tesla.
- Tesla faced a 70% fall in profits in the first quarter of 2025, prompting Musk's decision.
- Musk has advised the US President to reduce tariffs, despite Tesla having a factory in Shanghai.
Musk distances himself from the White House. He will focus on saving Tesla
During a conference call with Tesla investors, Musk shared that his responsibilities as the informal head of the team tasked with reducing costs and simplifying bureaucracy have largely been fulfilled. From May onwards, he intends to allocate no more than one to two days a week to activities within the DOGE (Department of State Efficiency), and only for as long as his involvement is necessary and welcomed by the President.
The billionaire simultaneously declared that he will shift his focus to leading Tesla, which is currently encountering significant challenges. In the first quarter, the company achieved a profit of $409 (€360) million—down 71% from the previous year. As reported by the "New York Times", without income from interest and sales of carbon credits, Tesla would have faced a loss exceeding $500 (€440) million.
The company's worsening performance is influenced by various factors, including a drop in demand for Tesla's electric vehicles, increased competition from Chinese manufacturers, and damage to its image resulting from Musk's political involvement.
Tesla's profit decline forces Musk to change priorities
Musk himself acknowledged the criticism he faces but claims that many of the activists rallying against his company are "paid". He also highlighted that he advised the President to lower tariffs, although, in his view, Tesla is somewhat shielded from their effects—even though the company's largest factory is located in Shanghai, and Reuters recently cited disruptions in the supply of some components from China.
I've been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity but this decision is fundamentally up to ... the president of the United States. I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do," said Musk.
