Tesla Profits Fall 71% Amid Musk-Trump Backlash. Tesla has reported a staggering 71% drop in net profit for the first quarter of 2025, with earnings falling to $409 million compared to the same period last year. This sharp decline coincides with growing public and investor discontent over CEO Elon Musk’s active involvement in the Trump administration.
Musk’s Political Engagement Sparks Controversy
Elon Musk’s appointment as head of the Department of Government Efficiency (DOGE) under President Trump has drawn significant criticism. His role in implementing aggressive government spending cuts and aligning with far-right political figures has alienated many consumers and investors. In Europe, Tesla’s sales have plummeted, with a 63% drop in France and nearly 60% in Germany. Analysts attribute these declines to Musk’s perceived endorsement of controversial political parties and policies.
Consumer Backlash Intensifies
The backlash against Musk’s political activities has manifested in various ways. Tesla owners have expressed embarrassment over their association with the brand, leading to a surge in sales of anti-Musk stickers and merchandise. Protests and acts of vandalism targeting Tesla showrooms have been reported, reflecting the growing dissatisfaction among consumers.
Financial Struggles and Market Response.
Tesla’s financial performance has been severely impacted by a 13% decline in vehicle sales during the first quarter. In spite of offering significant discounts and incentives, sales continued to slide. As a result, the company’s stock has suffered dramatically, losing over 40% of its value since the beginning of the year. Additionally, investors have grown increasingly concerned about Musk’s divided focus between Tesla and his political role. Consequently, many are urging him to prioritize the company’s operations to prevent further losses. Investors have voiced concerns over Musk’s divided focus between Tesla and his governmental role, urging him to prioritize the company’s operations.
Musk’s Response and Future Outlook
In response to mounting pressure, Musk announced plans to reduce his involvement in the Trump administration, stating he would limit his political activities to one or two days per week starting in May. He emphasized a renewed commitment to Tesla, aiming to stabilize the company’s performance and address investor concerns.
Looking ahead, Tesla plans to introduce a more affordable version of the Model Y and launch a driverless robotaxi service in Austin, Texas, by June. These initiatives are part of the company’s strategy to regain consumer trust and improve financial outcomes.
