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Elon Musk's automaker Tesla sees profits plummet

Karl Sexton | Richard Connor with AFP, AP, dpa, Reuters
April 23, 2025

Tesla's first-quarter profits have slumped by more than two-thirds. The result comes amid a public backlash against Elon Musk over his work for the Trump administration.

Demonstrators rally against Tesla CEO Elon Musk during a 'Tesla Takedown' protest outside a Tesla Store in San Francisco
Tesla has become the target of widespread protests against Musk's involvement in the Trump administration, especially his role in DOGE [FILE: March 29, 2025]Image: Josh Edelson/AFP

Electric vehicle producer Tesla on Tuesday reported profits of $409 million (€397 million) after a slide in auto sales that saw quarterly profits fall by 71%.

The steep profit losses come as the firm fights a backlash due to owner Elon Musk's leadership of a US government jobs-slashing program — known as the Department of Government Efficiency (DOGE).

His 130-day mandate at DOGE is due to expire in late May.

How has Elon Musk reacted?

Immediately after the results were published, Musk said he planned to "significantly" reduce his work for US President Donald Trump's administration in May to focus on Tesla.

"I think starting probably next month, in May, my time allocation to DOGE will drop significantly," Musk told investors on a conference call.

The South Africa-born billionaire also said that the bulk of his work to set up DOGE had been completed.

Musk has said he has been juggling DOGE and running his businesses with 'great difficulty' [FILE: February 20, 2025]Image: Jose Luis Magana/AP Photo/picture alliance

What has Musk been doing for the Trump administration?

Musk, the world's wealthiest person, has been leading US President Donald Trump's attempts to cut federal government spending drastically.

Under his leadership, DOGE has sought to dismantle several government agencies, including USAID and the Department of Education, in a bid to root out alleged corruption, cut bureaucracy and boost efficiency. 

Hundreds of thousands of federal workers have been laid off, while dozens of government programs have been suspended or canceled.

The sweeping cost-cutting and restructuring measures have faced increasing opposition in court.

The public backlash against Musk, both in the US and abroad, has been severe.

Several protests have been held at Tesla showrooms, some of which have been attacked by anti-Musk protesters.

Are Elon Musk's politics to blame as Tesla sales tank?

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Edited by: John Silk

Karl Sexton Writer and editor focused on international current affairs
Richard Connor Reporting on stories from around the world, with a particular focus on Europe — especially Germany.
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