Elon Musk’s behavior has had serious consequences for Tesla, whose profits have plummeted by 71%

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.

Billionaire Elon Musk said he will step back from the U.S. DOGE Service next month and focus on Tesla, his reeling electric vehicle company, which on Tuesday reported a stunning 71 percent plunge in profits compared with the first quarter of 2024.

— The Washington Post (@washingtonpost.com) 2025-04-23T12:02:46.607Z

Most of the decline is attributed to the heated controversies surrounding Elon Musk, including his US political involvement alongside Trump with DOGE, his controversial comments and gestures, and his closeness to the far right.

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 electric vehicle company.

However, Elon Musk has said he has no intention of withdrawing from DOGE altogether, stating that he will remain heavily involved with the department under the Trump administration until the end of Donald Trump’s term.

Elon Musk’s erratic statements and behavior have clearly turned off some of Tesla’s customers, who were already weakened by the rise of competitors in the electric vehicle sector.

The company now has to contend with tariffs imposed by Donald Trump, further complicating its situation.

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.

This content was created with the help of AI.