Analysts have linked Tesla steep losses to its CEOs role as a US government efficiency czar

Tesla and SpaceX CEO Elon Musk has announced he will scale back his efforts to cut government spending at the controversial US Department of Government Efficiency (DOGE), and refocus on his businesses. Tesla suffered a massive 71% drop in profits and a 9% decline in revenue for the first quarter of 2025.

Musk clarified though that he has no intention of stepping away from his work with DOGE altogether.

During a conference call with analysts on Tuesday, Musk stated that with the "major work of establishing the Department of Government Efficiency" now complete, he plans to dedicate more time to Tesla and expects to spend only "a day or two per week on government matters."

The EV manufacturer, based in Austin, Texas, reported a net profit of $409 million for the first quarter of 2025, a steep decline from $1.41 billion in the same period a year earlier - the largest year-on-year drop in the company's history. Tesla's revenue also fell from $21.3 billion to $19.3 billion between January and March.

Analysts have largely attributed the steepest sales decline in Tesla's history to Musk's role with DOGE. The tech billionaire has become an increasingly polarizing figure due to his close ties to US President Donald Trump and his work as the head of the unofficial agency tasked with slashing government spending.

Since January, dozens of Tesla-linked locations across the US and internationally have been hit by protests. Musk has suggested the campaign could be a coordinated effort bankrolled by major Democratic donors, including George Soros.

Musk claimed during the call, without providing evidence, that the protests were orchestrated by "those who were receiving the wasteful and fraudulent dollars," saying that violent attacks against Tesla are "paid for."

"I think the right thing to do is fight the waste and fraud and try to get the country back on the right track," he said. "If the ship of America goes down, Tesla will go with it."

Musk's role as a special government employee is set to conclude by late May, after which the billionaire is expected to return to his private ventures. DOGE, created under Trump's executive order, will remain active until at least 2026.

(RT.com)