PULSE POINTS:
❓What Happened: Elon Musk pledged to reduce his time working for the Department of Government Efficiency (DOGE) after Tesla’s net income plummeted 71 percent to $409 million, its least profitable quarter since 2020.
👥 Who’s Involved: Elon Musk, Tesla CEO and Trump advisor; Donald J. Trump, 45th and 47th U.S. President.
📍 Where & When: Musk spoke on an earnings call on April 22, 2025, following Tesla’s Q1 results.
💬 Key Quote: “Probably in the next month, my time allocation to DOGE will drop significantly.” — Elon Musk.
⚠️ Impact: Musk’s shift in focus may stabilize Tesla amid boycotts and tariff-related losses, but his MAGA ties risk long-term damage to the brand’s appeal among liberal consumers.
IN FULL:
Tesla owner Elon Musk has announced plans to significantly cut back on his role in President Donald J. Trump’s Department of Government Efficiency (DOGE) after the electric car company reported a 71 percent drop in net income to $409 million for the first quarter of 2025—the least profitable quarter since 2020. Sales fell nine percent to $19.3 billion, missing market expectations, as Tesla grapples with boycotts from left-leaning consumers and the impact of President Trump’s trade tariffs on its supply chain. “Probably in the next month, my time allocation to DOGE will drop significantly,” Musk said on an earnings call Tuesday evening, signaling a pivot back to Tesla’s core business.
Musk’s involvement in the Trump administration has alienated liberal electric vehicle (EV) buyers. Tesla believes “Changing political sentiment” and a 13 percent drop in vehicle deliveries in Q1 reflect a boycott by Democrat-voting Americans and European markets. Tesla’s stock, down 40 percent from its December peak despite a five percent post-earnings rally, reflects investor unease.
Musk’s alignment with the administration has also sparked aggressive attacks on Tesla vehicles and showrooms and even customers, with every Tesla owner being doxxed by hackers in March.
Meanwhile, Tesla faces fierce competition, having been overtaken by China’s BYD as the top electric vehicle producer in 2024.
Musk is betting on futuristic ventures to revive Tesla, including a self-driving taxi service set to launch in Austin, Texas, by June and production of the Optimus humanoid robot later this year. However, skeptics like Gordon Johnson of GJH Research doubt these ventures will yield profits for five to ten years, if ever. “Even the ‘Tesla faithful’ are beginning to lose patience,” Johnson warned.