Breaking News: In a dramatic shift, Tesla CEO Elon Musk has announced he will significantly reduce his involvement with the Trump administration, a move driven by the company’s alarming financial downturn. Tesla’s profits plummeted by over 70% in the first quarter of the year, with automotive revenues declining 20% compared to the previous year, raising urgent concerns among investors.
The fallout from Musk’s polarizing political affiliations has triggered widespread protests and boycotts of Tesla globally, tarnishing the brand’s reputation. Musk acknowledged during a conference call that his political activities have adversely impacted Tesla’s sales, which he referred to as a “blowback.” He confirmed plans to spend less time on his controversial initiative known as the Department of Government Efficiency (Doge) starting next month, which has drawn criticism for its aggressive cost-cutting measures and access to sensitive government data.
Investors are increasingly wary, with one declaring Tesla a “broken company” due to Musk’s turn toward far-right politics. While shares saw a slight uptick in after-hours trading, optimism is scarce amidst ongoing challenges, including reliance on Chinese lithium battery production and the political storm surrounding tariffs.
Tesla’s future remains uncertain, with no earnings forecast provided, as Musk grapples with the consequences of his political entanglements. Analysts suggest this could mark a pivotal moment for Tesla, as Musk must now navigate the tumultuous waters of a changing political landscape to restore the company’s fortunes. As protests continue and investor confidence wanes, the pressure mounts on Musk to prioritize Tesla’s survival over political engagements. The clock is ticking, and the stakes have never been higher for the electric vehicle giant.