After Tesla’s revenues and earnings fell in the first three months of this year, Elon Musk, the company’s CEO, has announced that he will reduce his involvement in Donald Trump’s government. As Musk established himself as a political mainstay in the White House, sales fell and the brand was criticised.
The company said on Tuesday that its first-quarter 2025 automotive sales were 20% lower than the same time the previous year, and that its profits had dropped by more than 70%. By hesitating to provide a growth prediction and stating that “changing political sentiment” may significantly harm demand, the corporation cautioned investors that the suffering could not end.
The company’s recent downturn coincided with a backlash against Musk’s involvement in Trump’s new government, which he said distracted him from the business.
The CEO of the internet company gave Trump almost a quarter of a billion dollars to help him win reelection. In order to reduce federal expenditures and the size of the government workforce, he is also in charge of Trump’s Department of Government Efficiency (Doge) project.
Musk stated that he will “drop significantly” his time allocation to Doge beginning next month. As long as the president would like me to do so and as long as it’s useful,” he promised, he would only devote one or two days a week to government affairs. Around the world, demonstrations and boycotts of Tesla have been triggered by his political participation.
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