Elon Musk to refocus on Tesla amid falling profits

Elon Musk is now shifting his attention back to Tesla after recent criticism surrounding his involvement with the Trump administration. Sources suggest that Musk’s controversial political role has been linked to a decline in both sales and profitability at the electric vehicle maker.

In the early hours of Wednesday, Musk took to X (formerly Twitter), retweeting that he plans to significantly reduce his time spent on Department of Government Efficiency (DOGE) initiatives starting next month, pledging instead to dedicate more energy to Tesla.

The bulk of the work needed to get the DOGE team operational is mostly complete, Musk posted. “I’ll still contribute 1–2 days per week, as long as the President requests it.”

This announcement follows Tesla’s disappointing quarterly earnings report, which missed Wall Street expectations by a wide margin. 

Company figures reportedly show a 9% decline in overall revenue, with auto sales revenue down 20%. Adjusted earnings dropped 39%, while profits plunged a staggering 71% year-over-year – worse than anticipated.

While Tesla is not as heavily impacted by tariffs as other automakers, the company acknowledged that ongoing global trade tensions can affect the company. Management noted that it might need to revise guidance due to the unpredictability of international trade policies.

The company stated in its earnings release that its difficult to assess the effect of changing global trade dynamics on their supply chains, cost structure, and customer demand. 

Industry insiders reportedly said that Elon’s comments reflect a growing effort to distance himself from political controversy as he re-engages with Tesla’s day-to-day operations.