Tesla Earnings Plunge as Elon Musk Steps Back from DOGE Role Amid Controversy

The latest Tesla earnings report shows a sharp decline in revenue and vehicle sales, adding pressure to Elon Musk’s controversial dual roles.

During Tuesday’s investor call, Musk announced he will scale back his involvement with the Department of Government Efficiency (DOGE) — a Trump administration agency he has led — to refocus on Tesla after mounting backlash and global protests. The company’s financials fell short of expectations, with net income plunging 71% and automotive revenue dropping nearly 20% year-over-year.

Earnings Miss and Sales Collapse

Tesla’s revenue fell 9% year-over-year to $19.3 billion, with automotive revenue plunging 20%. Net income dropped 71%, down to $409 million, and diluted earnings per share slid 40% to $0.27. Tesla’s operating margin also dipped sharply to 2.1%, down 343 basis points from the year before.

The company delivered 323,800 vehicles in Q1 2025—down 63,000 units from the same period in 2024, marking Tesla’s worst sales quarter in nearly three years.

Musk Under Fire for Political Role

Many analysts and investors have blamed Tesla’s downturn on Musk’s controversial role at DOGE, a Trump administration agency focused on cutting “waste and fraud.” Critics say Musk’s political alignment and public support for far-right parties in Europe have damaged Tesla’s brand, especially in European and Chinese markets.

Protests outside Tesla showrooms and calls for boycotts have intensified, with some showrooms reportedly vandalized.

But Musk defended his role, saying, “If the ship of America goes down, Tesla will go with it.” He insisted DOGE was nearly set up and that stepping back was now possible.

Trade War and Market Uncertainty

Musk also blamed trade policy instability for the company’s outlook. The Trump administration recently imposed new auto tariffs, and Tesla warned that the evolving global trade landscape was affecting supply chains, costs, and consumer confidence.

Despite Tesla producing most of its U.S. vehicles domestically, it relies on imported parts, exposing it to trade pressures.

Looking Ahead: Robotaxis and Affordable EVs

Tesla reiterated its commitment to launch more affordable EV models and driverless robotaxis by next year. Musk claimed these innovations would lead to a “sustainable abundance for all.” However, skeptics point out that neither has yet materialized at scale, despite past promises.

Musk downplayed worries over brand damage and insisted, “The future of Tesla is brighter than ever.”

Stock Reaction and Market Response

Following Musk’s announcement to refocus on Tesla, TSLA shares rose 4% in after-hours trading. Yet, the stock remains down 50% from its December 2024 peak.

Tesla now faces increasing competition from Chinese EV maker BYD, which has outpaced Tesla in quarterly sales, threatening Tesla’s hold on the global EV crown.

Do you think Musk’s political involvement is hurting Tesla, or is it just the economy catching up with EV makers?

More…

• https://edition.cnn.com/2025/04/22/business/tesla-reports-disappoint-drop-in-revenue-and-profits/index.html
• https://www.foxbusiness.com/markets/tesla-earnings-fall-short-elon-musk-says-doge-time-drop-significantly
• https://www.msn.com/en-us/money/markets/tesla-earnings-plunge-as-trade-tensions-and-trump-ties-weigh-on-results/vi-AA1DpXLq?ocid=finance-verthp-feeds