Yikes. Tesla announced a 71% decline in profits for the first quarter of 2025, according to its latest earnings report. The company’s financial performance fell below analyst projections, with total revenue dropping 9% year-over-year to $19.3 billion. Revenue from vehicle sales saw an even steeper decline, decreasing by 20% compared to the same period last year.
Get this the disappointing earnings release comes as some investors have urged Elon Musk to reduce his involvement in government work and refocus on Tesla. Musk, whose temporary government role concludes next month, addressed these concerns during Tuesday’s earnings call.
“Working for the government to get the financial house in order is mostly done,” Musk stated. “I think starting probably next month in May, my time allocation to those will drop significantly.”
He added that he plans to continue advising the federal government one or two days per week for the remainder of the presidential term to “make sure that the waste and fraud that we stopped does not come roaring back.” Musk also indicated he would increase his focus on Tesla operations moving forward.
Regarding recent protests against the company, Musk claimed without providing evidence that demonstrators were “receiving fraudulent money.” He also commented on current trade policies, stating: “I’ve been on the record many times as saying that I believe lower tariffs are generally a good idea.” However, he acknowledged that tariff decisions ultimately rest with elected officials.
Tesla’s earnings statement highlighted several challenges facing the business, including “changing political sentiment” that may affect demand and the “current tariff landscape” impacting global operations. The company noted it is implementing strategies to stabilize its business amid what it described as “rapidly evolving trade policy” affecting supply chains and costs across the automotive sector.
Anyway, that’s business. Ish happens.