Major business setbacks prompted Tesla's CEO to announce to the company's investors that he would be stepping back from the DOGE government department as early as next month, in order to refocus some of his attention on the electric vehicle business.
A step backwards
Despite a rise of over 7% in worldwide sales of electric vehicles, Tesla recorded a 13% drop in its own sales compared with the same period last year, leading to a collapse in profits, down 71% in the first quarter of 2025.
Controversy
This decline is largely attributed to the controversies surrounding Elon Musk, notably his involvement in American politics alongside Trump with the DOGE, his controversial comments and gestures, and his closeness to the far right.
A major setback
This major setback prompted the CEO to announce to Tesla investors that he would be taking a step back from DOGE as early as next month, in order to refocus some of his attention on the company.
Till the end
However, Elon Musk said he had no intention of withdrawing from DOGE altogether, specifying that he would remain involved with the department under the Trump administration until the end of Donald Trump's term.
The rise of competitors
Elon Musk's erratic statements and behavior have clearly put off some of Tesla's customers, who were already weakened by the rise of competitors in the electric vehicle sector.
Tariffs
The company also now faces tariffs imposed by Donald Trump, further complicating its situation.
Reassuring investors
As well as trying to reassure investors of his renewed involvement in the company, Elon Musk also sought to appease them about his position on tariffs, saying he was in favor of a reduction. However, he made it clear that, ultimately, decisions rest with the President.