Islamabad, Apr 23, 2025: Elon Musk has revealed plans to reduce his involvement in the federal Doge initiative—an effort led by Donald Trump’s administration aimed at cutting government spending—following Tesla’s sharp downturn in its financial performance for Q1 2025.
Tesla reported a dramatic 70% fall in profits and a 20% slide in automotive sales compared to the same quarter last year.
The company earned $19.3 billion in total revenue, falling short of analyst projections which hovered around $21.1 billion.
Facing public scrutiny over his political ties and Tesla’s business strategy, Musk confirmed he will cut back on time devoted to government affairs.
“Starting next month, my commitment to Doge will be reduced to just one or two days weekly,” Musk told media and shareholders after the earnings release.
Vehicle deliveries dropped by 13%, marking the lowest output in three years, despite aggressive price cuts meant to boost sales.
Increasing consumer backlash has worsened Tesla’s struggles, as some markets experience protest-driven boycotts linked to Musk’s role in Trump’s campaign and federal programs.
Elon Musk had contributed more than $250 million to Trump’s re-election bid and is heading the Doge cost-reduction mission.
Although Musk defended his participation in the Doge program, calling it “essential,” growing political controversy is beginning to overshadow Tesla’s business focus.
The company did not share any forward-looking sales or growth forecast, citing shifting political landscapes and uncertain trade policies as reasons for its caution.
New tariffs on Chinese imports have also posed hurdles for Tesla, which relies on Chinese parts despite domestic car assembly. “Our global supply chain gives us flexibility, but tariffs are still a major challenge in our low-margin industry,” Musk explained.
He also criticized Trump’s trade advisor Peter Navarro, calling him a “moron,” following disputes over Tesla’s manufacturing credentials.
Looking ahead, Tesla reaffirmed its commitment to artificial intelligence as a core growth driver, though market analysts remain doubtful given recent financial instability.
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Tesla shares rose over 5% in after-hours trading, despite the earnings miss, suggesting investors may have already priced in the worst.
Dan Coatsworth of AJ Bell remarked, “Tesla is under mounting pressure—competition is fierce, demand is faltering, and Musk’s political involvement is creating distractions. Investors now question whether leadership is fully aligned with business priorities.”
