Musk Blames Protests for 71% Drop in Tesla Earnings

Tesla reported a sharp decline in profits for the first quarter of 2025, with net income dropping 71% from the previous year and a 9% decrease in revenue, missing Wall Street expectations. CEO Elon Musk attributed the growing protests at Tesla dealerships to 'paid' demonstrators benefiting from government waste and fraud, though organizers maintain the protests are grassroots and peaceful. Critics and polling data dispute Musk's claims, indicating that public disapproval is linked to his controversial role as head of the Department of Government Efficiency (DOGE) under President Trump. Musk's tenure at DOGE has involved mass firings of federal workers and contentious cost-cutting measures, which have been met with skepticism regarding their effectiveness and impact on the federal budget. Tesla's financial woes are also attributed to shifting political sentiment and trade policies, with some of its earnings bolstered by the sale of zero-emissions tax credits. In response to the backlash and disappointing earnings, Musk announced he will reduce his involvement at DOGE to refocus on Tesla.