Elon Musk said the time he spent with the Donald Trump Government Department (DOGE) “would drop considerably” in May and he allocates more time to Tesla.
He occurs after the benefits of the first quarter in Tesla sank while the company faced the drop in sales, partly due to President Trump’s rates.
As a special government employee, Mr. Musk was limited to 130 days in his role at Doge, which mainly aims to reduce federal spending.
But the cups, which included ax government jobs, divided the country and caused a reaction to his business, including demonstrations and attacks on Tesla’s exhibition halls, which prompted Donald Trump to label the “terrorists” of the Vandals.
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Tesla said Tuesday that quarterly profits had dropped $ 71% to $ 409 million (306.77 million pounds sterling), compared to $ 1.39 billion (1.04 billion pounds sterling) in the first quarter of 2024. The income was also much lower than the forecasts, down 9% to 19.3 billion dollars (14.5 billion sterling books) between January and March.
The value of the company has dropped since it reached a record in mid-December. Since then, Tesla’s share price has dropped by more than 50%.
Tesla’s share price fell following the turbulence of the financial market caused by world trade war rates, competition from Chinese competitors of electric vehicles and concerns about Mr. Musk’s ability to give the company the attention it needs.
The role of Mr. Musk as director general of the company was among the most common questions that the shareholders asked a portal of questions and answers before a call for investors on Tuesday evening.
In addition to his role at the top of Tesla, he is also the CEO of the SpaceX space exploration company and has the social media company X, formerly known as Twitter.
Donald Trump hired Elon Musk to help reduce federal spending, but Tesla has faced a public reaction. Pic: AP
Musk has “lost the focus”
A former investor of Tesla Ross Gerber said in a recent interview With the business of Sky live, Mr. Musk had lost his goal and was now too “divisor”.
There was no clear sign of improvement in Tesla, because the highly anticipated updates on the manufacture of affordable cars and the development of driverless technology left unanswered questions.
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The work on an affordable car remained “on the right track for the start of production in the first half of 2025,” said Tesla’s financial results, but no details on a prototype was given.
The production of Tesla’s autonomous robotaxi, named Cybercab, is expected to start in 2026.
Prices that harm the perspectives
The uncertainty was also obvious in the statement of the prospects, which indicated that the damage prices could pose to the company.
“It is difficult to measure the impacts of the change in global trade policy on automotive and energy supply chains, our cost structure and our request for lasting goods and related services”, “
“This year’s growth rate will depend on various factors, including the acceleration rate of our autonomy efforts, the production ramp in our factories and the wider macroeconomic environment”.
Although Teslas is made in the United States, there are also factories in China and Germany. As part of the tariff regime, these automotive parts are subject to additional taxes when they enter America.