Governance

Musk to Scale Back White House Role as Tesla Profits Plunge

APR 23 2025·Updated APR 24 2025

Story

Above: The logo of Tesla, Inc. is displayed on a smartphone screen, with the company's branding in the background, on April 20, 2025, in Chongqing, China. Image credit: Cheng Xin/Contributor/Getty Images News via Getty Images

The Facts

Tesla this week reported a dramatic 71% decline in first-quarter profits to $409 million, while revenue dropped 9% to $19.3 billion, falling significantly below Wall Street expectations amid growing challenges for the electric vehicle manufacturer.
Newsmax
Al Jazeera
The company's vehicle deliveries also decreased by 13% in the first quarter, marking its worst performance since 2022. This comes as the company faces intensifying competition from Chinese manufacturers and traditional automakers.
guardian
Daily Mail
BBC News
Tesla's stock has declined by approximately 40% since the beginning of 2025, with the company facing widespread protests and boycotts linked to Musk's political alignment with the Trump administration.
The Washington Post
The Telegraph
Elon Musk announced Tuesday that he would significantly reduce his involvement with the Department of Government Efficiency (DOGE) starting in May, maintaining a commitment of 1-2 days per week to support President Trump's administration.
www.ft.com
CNBC
The Register
DOGE, under Musk's leadership, has implemented extensive federal job cuts across multiple agencies including the IRS, National Park Service, and various federal departments. He has claimed the moves have resulted in $160 billion in savings, though these figures have been disputed.
CNBC
The Telegraph
Musk's role as a special government employee is set to expire after 130 days, coinciding with his planned reduction in DOGE involvement, though he expressed intention to remain involved through the remainder of Trump's term.
New York Post
NPR

Sources Split

LEFT

CENTER

RIGHT

ESTAB
CRIT

CENTER

PRO
ESTAB

The Spin

Narrative A

Elon Musk is Tesla’s greatest liability. The stock’s wild swings, outsized valuation, and collapsing credibility mirror his erratic focus. While sales fall and products age, Musk chases politics and Martian dreams. Investors bet on his genius; now they’re paying for his distraction. Tesla isn’t floundering because of the competition — it’s floundering because its CEO left the driver’s seat.

www.ft.com

Carsguide

Narrative B

Elon Musk's distraction with DOGE is not the root of Tesla’s problems — it's merely a symptom. Tesla’s woes stem from aging models, fierce Chinese competition, and Musk’s polarizing politics. Blaming his DOGE role is a red herring; the real damage began when Musk morphed from visionary to provocateur, eroding brand trust and alienating core customers long before any federal title was tacked to his name.

BBC News