- Wednesday, April 23, 2025
By: Vibhuti Pathak
Elon Musk announced Tuesday (22) that he will begin redirecting more of his time and energy toward Tesla starting next month, as the electric vehicle giant struggles with plunging sales and profits in the first quarter of 2025. The decision comes amid rising investor unease about Musk’s deepening involvement in US government operations and a broader economic climate marked by aggressive tariffs and shifting regulations.
During a tense earnings call with investors, Musk acknowledged the gravity of Tesla’s financial performance. The company reported a dramatic 71 per cent drop in net income and a 20 per cent decline in car sales revenue compared to the same period last year. Total revenue slid to $19.3 billion—a 9 per cent year-over-year dip—while operating income plummeted 66 per cent to just $0.4 billion.
“Starting next month, I will be allocating more of my time to Tesla,” Musk stated. “I’ll still spend a day or two on government matters, depending on what President Trump needs, but my primary focus will shift back to Tesla.”
Musk didn’t explicitly link Tesla’s poor performance to his controversial role as the head of the federal reform initiative DOGE (Department of Government Efficiency), but he did acknowledge the growing scrutiny. “There’s been some blowback for the time that I’ve been spending in government,” he admitted.
Through DOGE, Musk has been instrumental in pushing for widespread government workforce cuts and deploying private data teams to root out inefficiencies and fraud. While some have praised these efforts, critics argue that his dual roles in public service and private enterprise have raised ethical and strategic concerns, particularly for Tesla shareholders.
Despite the turmoil, Musk offered a partial defense of his government work. “DOGE has made a lot of progress in addressing waste and fraud,” he said. “If America goes down, we all go down with it—including Tesla and everyone else. So this matters.”
Musk also addressed recent US tariffs, a policy shift championed by President Trump that many fear could destabilize global supply chains. While Musk has previously been a vocal critic of tariffs, he noted that Tesla remains “the least affected car company with respect to tariffs” due to its diversified global supply chain.
“I’ve been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity,” Musk said. “But this decision lies with the president. I’ll keep advocating for fewer tariffs, but ultimately, it’s not up to me.”
As Tesla enters a critical period marked by slowing EV adoption, growing competition, and political entanglements, Musk’s renewed commitment to the company could be a strategic recalibration. Whether it’s enough to steer Tesla out of its slump remains to be seen—but for now, shareholders are watching closely as Musk prepares to shift gears.
