Tesla owner, Elon Musk, has announced plans to scale back his involvement in United States President Donald Trump’s administration, following a sharp downturn in Tesla’s financial performance.
The electric carmaker reported a 20% drop in automotive revenue in the first quarter of 2025, compared with the same period last year, while profits fell by more than 70%.
The decline came amid growing criticism of Musk’s political role in Washington and a broader backlash against the company.
Sales slumped during the quarter as Musk became increasingly visible in the White House, serving as the head of Trump’s Department of Government Efficiency (DOGE) initiative.
On Tuesday, Tesla warned investors that it would not provide a growth forecast, citing concerns that “changing political sentiment” could “meaningfully hurt demand.”
Musk, who donated over $250 million to Trump’s re-election campaign, acknowledged that his government role had taken his attention away from Tesla.
According to the BBC, he confirmed that his “time allocation to DOGE” would “drop significantly” starting next month.
He added that he would spend only “one to two days per week on government matters ‘as long as the president would like me to do so and as long as it’s useful’.”
His involvement in the Trump administration has prompted protests and calls for boycotts of Tesla products around the world.
