ReutersTesla’s boss Elon Musk said he would reduce his role in the Trump administration when the company’s latest profits and income showed a dive at the start of the year.
Sales have dropped and the brand faced the counter couples while Musk has become a political element of the new administration of the White House.
On Tuesday, the company declared a 20% drop in automotive income in the first three months of 2025, compared to the same period last year, while profits dropped by more than 70%.
The company warned investors that pain could continue, refusing to offer a growth forecast while affirming that “the evolution of political feeling” could harm the demand significantly.
The recent decrease in the company’s fortune comes in the middle of an outcry on the role of Musk in the new administration of President Donald Trump, whom Musk admitted to having withdrawn the company.
Musk contributed more than a quarter of a billion dollars to the re -election of Trump. He also heads the Trump Government Ministry of Effectiveness (DOGE) to reduce federal spending and reduce government workforce.
Musk’s political involvement has sparked Tesla’s demonstrations and boycotts around the world.
He said that the “return” comes from people who “will try to attack me and the Doge team”. But he called his work at DOGE “critical” and said that “obtaining the government’s house is mainly completed”.
Tesla brought up $ 19.3 billion (14.5 billion pounds sterling) of total income during the quarter, down 9% in annual sliding, according to new figures. It was less than $ 21.1 billion expected by analysts, and came when the company reduced prices to seduce buyers.
“The Musk time allocation will decrease considerably” from May, he said, adding that it will only spend 1 to 2 days a week on government issues “as long as the president would like me to do it and as long as that is useful”.
Trump’s prices on China also weighed heavily on Tesla, said the company. Although the vehicles Tesla sells on its domestic market is assembled in the United States, it depends on many parts made in China. The “rapidly evolving trade policy” could harm its supply chain and increase costs, depending on the company.
“This dynamic, as well as the evolution of political feeling, could have a significant impact on demand for our short -term products,” said Tesla’s quarterly update.
Musk faced trade with other figures from the Trump administration, including sales advisor Peter Navarro.
ReutersEarlier this month, he called Navarro a “moron” on the comments that Navarro made on Tesla. Navarro had said that Musk was “not a car manufacturer. He is a car assembler, in many cases”.
Tuesday, Musk said that he thought Tesla is the less affected automobile company by prices because of her supply chains located in North America, Europe and China, but he added that “the prices are still difficult for a company where the margins are weak”.
“I will continue to plead for lower prices rather than higher rates, but that’s all I can do,” he said on Tuesday.
Tesla said artificial intelligence would contribute to future growth, although investors were not convinced by such arguments in the past.
The company’s shares have lost around 37% of their value this year, from the market on Tuesday. They were stable in exchanges after opening hours after the results.
Dan Coatsworth, investment analyst at AJ Bell, described the expectations of “rock-boot” after the company declared earlier this month that the number of cars sold during the quarter had dropped by 13%, at the lowest level in three years.
The company faces fierce competition, said Coatsworth, warning that the potential disruption of global supply chains following the Trump trade war also creates risks.
“Tesla’s problems are riding,” he said.
