Tesla’s first-quarter earnings report revealed a 71% drop in net income and a 9% decline in revenue, marking one of the company’s most challenging financial periods to date. Amid these setbacks, CEO Elon Musk announced plans to reduce his involvement in the Department of Government Efficiency (DOGE) to concentrate more on Tesla’s operations.
Musk acknowledged the impact of his political engagements on Tesla’s performance, stating, “If the ship of America goes down, Tesla will go with it.” He emphasized the need to address waste and fraud in government but recognized the importance of steering Tesla back to stability.
The company’s recent struggles have been attributed to various factors, including intensified competition in the electric vehicle market and public backlash against Musk’s political activities. Protests and boycotts have emerged in response to his role in DOGE, affecting Tesla’s brand image and sales, particularly in Europe.
In response to these challenges, Musk plans to limit his DOGE commitments to one or two days per week starting next month. He also reiterated Tesla’s commitment to innovation, highlighting upcoming projects such as the development of more affordable vehicles and advancements in autonomous driving technology.
