Elon Musk to Scale Back Work with Trump Administration Amid Tesla Profits Plunge

Tesla CEO Elon Musk will reduce his involvement with the Department of Government Efficiency (DOGE), led by President Donald Trump, following a significant drop in the company's first-quarter profits. Musk announced on Tuesday that he will allocate more time to running Tesla and cut back his government work to one or two days a week from May. This decision comes as Tesla reported a 71% decline in net profit for the January-March period, with earnings of $409m compared to $1.39bn the previous year.

Key Takeaways:

• Tesla's net profit declined by 71% in the first quarter, with earnings of $409m compared to $1.39bn the previous year.
• The electric carmaker's global sales fell 13% over the same period.
• Musk's involvement in the Trump administration has been criticized, with Tesla vehicles, dealerships, and charging stations targeted in dozens of acts of vandalism and arson in several countries.
• Trump's 25% tariff on auto imports is affecting Tesla, which relies on parts from Mexico for its US market cars built in Texas and California.
• Musk will continue to defend his work with DOGE, saying his efforts are aimed at fighting fraud and waste and getting the country "back on the right track."

Statistics:

• Tesla's net profit declined by 71% in the first quarter.
• Global sales fell 13% for the same period.
• Tesla's income for the January-March period was $409m.
• Previous year's income for the same period was $1.39bn.
• Musk's comments on Tuesday triggered a 4.6% rise in Tesla shares in after-hours trading.
• Since the start of the year, Tesla shares have dropped more than 40%.

Sources:

• "Elon Musk's DOGE Faces Vandal Smashes at Showrooms After Tesla Revenue Drops" [1]
• "Tesla Sales Plummet in Europe Despite EV Growth" [2]
• [1] https://www.aljazeera.com/news/2025/3/29/elon-musk-protesters-gather-at-tesla-showrooms
• [2] https://www.aljazeera.com/news/2025/3/25/tesla-sales-plummet-in-europe-despite-ev-growth