2 weeks Ago By France 24
Elon Musk plans to "significantly" reduce his work for Donald Trump's administration in May to focus on Tesla, the billionaire CEO said Tuesday. Tesla reported a 71 percent drop in quarterly profits as analysts warn of brand damage due to Musk's work on behalf of Trump for the "Department of Government Efficiency." Elon Musk says he’ll dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit.
The company has faced angry protests over Musk’s leadership of a federal government jobs-cutting group that has divided the country. Tesla, based in Austin, Texas, said Tuesday that quarterly profits fell by 71% to to $409 million, or 12 cents a share. That’s far below analyst estimates.
Tesla’s revenue fell 9% to $19.3 billion in the January through March period, also below Wall Street’s forecast. The disappointing results come as the company struggles to sell cars to consumers opposed to Musk’s role in the Trump administration.
Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too. Some Tesla investors have complained that Musk has been too distracted by his role at the Department of Government Efficiency, or DOGE, to effectively run Tesla. “This is a big step in the right direction,” said Wedbush Securities' Dan Ives, referring to Musk's decision to shift focus from Washington.
“Investors wanted to see him recommit to Tesla.” Tesla’ stock has fallen more than 40% this year but rose nearly 5% in after-hours trading. (FRANCE 24 with AP and AFP) Read more on FRANCE 24 English Read also: Elon Musk may step back from government role after turbulent run at DOGE Tesla sales in Europe almost halve amid anger against Musk.
