Elon Musk Scales Back White House Role as Tesla Profits Plummet

Tesla chief executive Elon Musk has announced plans to reduce his involvement in the Trump administration following a significant decline in the electric carmaker’s profits and sales, which analysts attribute to public backlash against his political activities.

The billionaire entrepreneur revealed he would decrease his time at the Department of Government Efficiency (Doge) to merely one or two days per week, whilst increasing his focus on Tesla operations. The announcement comes as Tesla reported a concerning 39 per cent drop in adjusted net income to £934 million, substantially missing analysts’ forecasts of £1.4 billion.

Revenue figures paint an equally troubling picture, with a 9.2 per cent decline to £19.3 billion, falling short of the projected £21.3 billion. The company’s first-quarter sales experienced a sharp 13 per cent decline, with deliveries dropping to 336,681 vehicles from 386,810 in the previous year. Notable market contractions were observed in both China and California, Tesla’s largest US market.

The company’s challenges extend beyond financial metrics, as it faces mounting protests and consumer boycotts linked to Musk’s role as a presidential adviser and his public support for right-wing political parties globally. The Tesla chief executive has dismissed these protests as attempts to “attack me and the Doge team,” whilst maintaining that his government work remains “critical.”

Tesla’s market position has weakened considerably against competitors, particularly Chinese manufacturers like BYD. The company’s share price has reflected these challenges, declining 37 per cent year-to-date, whilst short-sellers have profited substantially, generating estimated gains of £11.5 billion.

Despite these setbacks, Musk maintains an optimistic outlook, pledging Tesla’s return to growth in the current year. The company continues its commitment to autonomous technology development, though it faces increasing headwinds from both market competition and political sentiment.