Musk to back off government duties

Tesla profits drop 71% amid DOGE backlash

By: Bailey Schulz
USA Today

..... Tesla CEO Elon Musk said he would soon be spending time with the Trump administration after first-quarter earnings fell short of expectations.
..... Net income for the quarter was down 71% after a decline in vehicle deliveries, with Tesla battling growing competition fro foreign brands, shifting trade policies and growing backlash to the brand after musk aligned himself with the Trump administration.
..... "There are some challenges, and I expect that this year [2025] will be, there will probably be some unexpected bumps this year," [2025] Musk said during an April 22 [2025] earning call. "But I remain extremely optimistic about the future of the company."

Musk to push for lower tariffs

..... The slump comes as Tesla, along with other automakers, adjusts to auto tariffs impacted by President Donald Trump. In an April 22 [2025] financial report, Tesla said "rapidly evolving trade police" has impacted the global supply chain and the company;s cost structure.
..... While Tesla assembles its vehicles in the United States, the automaker is exposed to tariffs because it imports parts from other countries.
..... "I've been on the eroded many times saying hat I believe lower tariffs are generally a good idea for prosperity, but elected representative of the people, being the president of the United States,' Musk said. "I'll continue to advocate for lower tariffs rather than higher tariffs, but that's all I can do.
..... Tesla also noted that "changing political sentiment" could impact product demand in the near term. the company has braced backlash after Musk began work with the Trump administration's Department of Government Efficiency, the initiative that has fired tens of thousands of federal workers.
..... Dealerships have suffered vandalism and protests, and polls form Pew Research and CNBC show roughly half of Americans have negative views of the billionaire tech mogul. Shares had plummeted, ending April 22 [2025] about 50% down from their December [2024] peak. And first-quarter deliveries were down 13% from a year earlier, although Tesla said that was due in part to the company losing production time as it updated factories to produce the new Model Y.
..... "There's some good long-term growth opportunities, but there's a lot of near-term uncertainty, Edward Joes analyst Jeff Windau told USA Today ahead of Tesla's earnings call.
..... Wedbush Securities analyst Daniel Ives hinged the company's future on Musk's decision on when to leave the White house in a recent note, calling it a "fork in the road time."
..... "Tesla is Musk and Musk is Tesla," Ives said in an April20 [2025] note. "If Musk leaves the White House there will be permanent brand damage ... but Tesla will have its most important asset and strategic thinker back as full time CEO to drive the vision and long term story will not be altered."
..... Musk's stated disliked for Trump's tariffs echoed the spat he had with top trade adviser Peter Navarro in the aftermath of the so-called "Liberation Day" announcement.
..... Musk called Navarro a "moron" and "dumber than a sack of bricks" in the days following the tariff announcement. the insults followed comments from Navarro on CNBC, where he said Musk is "not a car manufacturer - he's a car assembler."
..... Musk said April 22 [2025] he would be spending less time with DOGE, likely starting in May. [2025]
..... "My time allocation to DOGE will drop significantly," Musk said, later adding, "I think I'll continue to spend a day or two per week on government maters for as long as the president would like me to do so, and as long as it is useful.
..... Trump has suggested Musk's time at the White House was nearing an end, although he said he would "keep him as long as I could keep him."
..... white House press secretary Karoline Leavitt wrote on X, the social media platform Mask owns, than "Elon will depart from pubic service as a special government employee when his incredible work at DOGE is complete."
..... As a special government employee, Musk has 130 days per calendar year to work for the federal government. That window is set to expire in late May. [2025]
..... Politico and ABC News reported earlier in April [2025] that Trump had told members of his Cabinet that Musk will return to the private sector, although the reports did not make clear f that would mean Musk leaving before his 130-daymandate.
..... Meanwhile, the reduction in Musk's political stature comes after a major loss for the world's richest man, who turned the Wisconsin state Supreme Court election a proxy referendum on himself. the race was won by liberal judge Susan Crawford, who said in her acceptance speech, "I never could have imagined that I'd be taking on the richest man in the world for justice in Wisconsin. And we won!"

New vehicle launch on track

..... Musk said Tesla was still on track to begin producing new vehicles, including more affordable models, in the first half of 2025.
..... "Auto deliveries have been under pressure this year, [2025] and the lower-cost vehicles were being counted on to help increase delivery volumes," Windau of Edward Jones said in an April 21 [2025] report.
..... Musk said the company is making "good progress" on its Optimus Humanoid robots and expects to have thousands working in Tesla factories by the end of the year. [2025] he said he's confident the company can get to a million units per year by 2030.
..... Musk also said the Texas-based company is "laser-focused" o lunching a robotaxi service in Austin in June, [2025] with 10 or 20 vehicles ready on day one. As for personal use, he said Tesla vehicles will be able to drive themselves before the end of the year. [2025]
..... "Can you go to sleep in your car and wake up at your destination?" Musk asked. "I'm confident that will be available in many cities in U.S. by the end of this year." [2025]
..... Musk has a history of overestimating how quickly Tesla can deliver new products. In 2015, he said Tesla would deliver full self-driving cars within three years. In 2019, he said he was confident by 2020. Tesla has yet to launch either.

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