Following a substantial decline in Tesla's profits, primarily attributed to Elon Musk's political role as an advisor to President Donald Trump, Musk announced he will dedicate more time to Tesla and less to his government duties. This decision followed widespread protests against Tesla and a 13% drop in car sales during the first quarter.
Tesla's stock price surged upon Musk's announcement. The company's first-quarter revenue decreased by 9%, and its profit plummeted by 71%, partly due to losses in crypto assets and lower car sales. Although Tesla's report doesn't explicitly mention Musk's political actions, it acknowledges the effect of changing political sentiment on customer demand.
Musk stated he would maintain a limited involvement in governmental affairs, spending one or two days a week, until the end of President Trump's term. He plans to continue advocating for lower tariffs but noted the final decision rests with the President.
Musk justified his continued, albeit reduced, government engagement by asserting his role was vital in combating government waste and fraud. He claimed that his actions were essential in preventing the financial collapse of the United States. He attributed the negative response to Tesla to those who benefited from the government waste and fraud he was fighting against.