Musk shifts gears as Tesla takes a hit

New York, United States (AFP) — Elon Musk will significantly scale back his Trump administration work in May to focus on Tesla, the billionaire announced Tuesday as the electric vehicle maker reported a 71 percent drop in first-quarter profits.

“Probably in the next month, my time allocation to DOGE will drop significantly,” Musk said at the outset of an earnings conference call, referring to his work for the “Department of Government Efficiency.”

The comments came as Tesla reported profits of $409 million following a drop in auto sales that analysts said reflected brand damage due to Musk’s work for President Donald Trump in slashing the US federal workforce.

Revenues fell nine percent to $19.3 billion.

The company retreated from its 2025 guidance, citing unpredictability over trade policy and demand.

“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company said.

“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near term.”

On the positive side, Tesla said it was on track to launch new vehicles “including more affordable models” in the first half of 2025.

Tesla also confirmed in a press release that a planned launch of its Robotaxi for autonomous driving in Texas remained “on track” by June.

Musk reiterated his bullish outlook on the long-term prospects for Tesla, highlighting its leadership in key growth areas: robotics, autonomous driving and artificial intelligence.

DOGE work ‘mostly done’

Musk, the world’s richest person, donated more than $270 million to Trump’s 2024 presidential campaign.