Elon Musk has announced that his involvement with the Department of Government Efficiency (DOGE), a Trump administration initiative, will be significantly reduced starting in May. The announcement coincides with Tesla’s 71 percent profit plunge and a 9 percent drop in quarterly revenue, sparking criticism from investors and Tesla supporters alike.
Speaking during Tesla’s recent earnings call, Musk said, “Probably in the next month, my time allocation to DOGE will drop significantly,” as the company deals with one of its worst quarters.
Protests, Vandalism Target Tesla Over Musk’s Political Role
Analysts have attributed Tesla’s sales decline—its largest to date—to Musk’s controversial political commitments. His role in DOGE has triggered protests outside Tesla showrooms and led to vandalism at company facilities across the United States. Demonstrations have also been reported in parts of Europe, further denting the company’s image.
Critics argue that Musk’s political affiliations are distracting him from running Tesla effectively. During the call, Musk claimed without evidence that protestors were “those who had been receiving the waste and fraud” eliminated by DOGE.
Tesla Posts $409 Million Profit, Down 71%
Tesla reported a net profit of just $409 million in the first quarter of 2025, down 71 percent from the same period last year. Revenue dropped to $19.3 billion, a 9 percent decline compared to last year’s Q1 figures. This marks the biggest revenue dip in the company’s history.
Despite the numbers and growing public scrutiny, Musk remained optimistic about Tesla’s future. “The future of Tesla is brighter than ever,” he said, highlighting progress in autonomous driving and humanoid robots as the company’s next big focus.
Analysts Warn of Further Trouble Unless Focus Returns to Tesla
Industry experts warn that unless Musk shifts his focus back to Tesla, the company could face further instability. With growing competition in the EV market and internal distractions mounting, many believe this could be a critical turning point for Tesla’s long-term vision and market leadership.
