During an earnings call on Tuesday, Elon Musk announced he plans to shift more of his focus back to Tesla, following a significant decline in the company’s sales and revenue in the first quarter of 2025. Concerns have grown over the impact of tariffs and Musk’s involvement in federal government operations through his DOGE initiative.
Tesla reported a 20% drop in vehicle sales revenue and a staggering 71% decline in net income for the quarter. Musk acknowledged the downturn, stating, “Starting next month, I’ll be dedicating more time to Tesla,” while noting he will still spend “a day or two” on government-related matters if President Trump desires.
While Musk did not explicitly link Tesla’s financial slump to his government work — including his role in reducing the federal workforce and deploying DOGE data teams — he did admit there has been “some blowback” regarding the time he has spent in Washington.
Tesla’s total revenue fell to $19.3 billion, a 9% year-over-year drop, with the company citing fewer vehicle deliveries and price reductions as contributing factors. Operating income also tumbled 66% to $0.4 billion.
Musk, who has publicly criticized the Trump administration’s tariff policies, reiterated his preference for lower tariffs, stating that Tesla remains relatively insulated due to its supply chains. “I’ve always supported lower tariffs for economic growth,” he said, “but ultimately, that’s up to the president.”
Defending his government efforts, Musk emphasized DOGE’s contributions to cutting waste and fraud, claiming the initiative is vital to restoring the country’s stability. “If America falters, we all go down with it — Tesla included,” he said. “So working with President Trump is part of a larger goal to keep the nation on track.”
