Musk Faces Skepticism Amid Tesla's 71% Drop in Earnings

Elon Musk has pledged to refocus on Tesla after a disastrous earnings report revealed a 71% drop in net income and a sharp decline in revenue, falling short of Wall Street expectations. Despite a brief uptick in Tesla's stock following Musk's announcement to step back from his involvement with the Trump administration's Department of Government Efficiency (DOGE), many investors and analysts remain skeptical that his renewed focus can repair the significant brand damage already done. Musk's controversial political activities and public persona have been widely criticized for alienating customers, particularly in liberal markets, and accelerating depreciation of Tesla vehicles. Market watchers on platforms like WallStreetBets and analysts note that the company's weakening fundamentals and eroded brand reputation may be too far gone for a quick turnaround, with some arguing that Musk's continued association could further harm Tesla. Retail investors and analysts alike stress the need for Musk to address core business issues rather than rely solely on his return to leadership. While Musk claims the major work for DOGE is complete and he will reduce his time on government matters, sentiment among investors suggests lasting damage to Tesla's prospects.