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Elon Musk Reduces Government Role to Refocus on Tesla After Profit Plunge

Tesla reports a 71% profit drop in Q1 2025 as Musk scales back his advisory position in the Trump administration to address the company’s declining sales and intensifying competition.

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Tesla-CEO Elon Musk neben US-Präsident Donald Trump

Overview

  • Tesla's Q1 2025 revenue fell 9% to $19.3 billion, with net profit plummeting 71% to $409 million, missing analyst expectations.
  • Vehicle deliveries dropped 13% year-over-year, with significant declines in key markets like China, the EU, and Germany, where registrations fell 62.2%.
  • Elon Musk announced plans to reduce his involvement in the Trump administration to one or two days per week starting in May, citing the need to focus on Tesla.
  • Musk’s political ties, including his $280 million investment in Trump’s campaign, have contributed to brand backlash, protests, and boycotts, further impacting Tesla’s sales.
  • Tesla faces mounting pressure from competitors like BYD and Volkswagen, with critics highlighting its aging model lineup and delayed innovations, such as the underperforming Cybertruck.