Musk Reduces White House Engagement Amid 71% Profit Drop at Tesla

Tesla reported a steep 71% drop in first-quarter profits, a decline attributed to both internal financial challenges and external pressures such as tariffs imposed by the Trump administration and increased competition from Chinese EV manufacturer BYD. The company also cited CEO Elon Musk’s polarizing political involvement as a factor in the declining sales and stock price, which has dropped over 40% since the start of the year and 50% from its December peak. In response to investor concerns about his divided focus, Musk announced he would significantly reduce his role in Donald Trump’s Department of Government Efficiency (DOGE), committing to spend 'far more' time running Tesla from May onward. Musk’s leadership of DOGE, which was tasked with federal job cuts and touted as producing major government savings, has faced public controversy and skepticism about its actual impact. Despite the financial woes, Tesla's shares saw a modest rebound after Musk’s pledge to prioritize the company. Musk also reiterated his intention to pivot Tesla’s focus towards new products like robotaxis and humanoid robots amid ongoing investor skepticism.