Tesla’s first-quarter profits have slumped by more than two-thirds. The result comes amid a public backlash against Elon Musk over his work for the Trump administration.
Electric vehicle producer Tesla on Tuesday reported profits of $409 million (€397 million) after a slide in auto sales that saw quarterly profits fall by 71%.
The steep profit losses come as the firm fights a backlash due to owner Elon Musk’s leadership of a US government jobs-slashing program — known as the Department of Government Efficiency (DOGE).
His 130-day mandate at DOGE is due to expire in late May.
How has Elon Musk reacted?
Immediately after the results were published, Musk said he planned to “significantly” reduce his work for US President Donald Trump’s administration in May to focus on Tesla.
“I think starting probably next month, in May, my time allocation to DOGE will drop significantly,” Musk told investors on a conference call.
The South Africa-born billionaire also said that the bulk of his work to set up DOGE had been completed.
What has Musk been doing for the Trump administration?
Musk, the world’s wealthiest person, has been leading US President Donald Trump’s attempts to cut federal government spending drastically.
Under his leadership, DOGE has sought to dismantle several government agencies, including USAID and the Department of Education, in a bid to root out alleged corruption, cut bureaucracy and boost efficiency.
Hundreds of thousands of federal workers have been laid off, while dozens of government programs have been suspended or canceled.
Source : https://www.dw.com/en/elon-musks-automaker-tesla-sees-profits-plummet/a-72314708
