Musk vows DOGE pullback as Tesla profits plunge
The Tesla SEO says he will soon step back from government matters to devote more time to the company
What happened
Tesla Tuesday reported a 71% tumble in profits and a 9% drop in revenue last quarter versus a year earlier, a steeper-than-expected decline it attributed in part to a "changing political sentiment" that "could have a meaningful impact on demand for our products in the near term."
Who said what
Investors and shareholders have "become increasingly frustrated" with Telsa CEO Elon Musk, attributing "many of the company's woes to the upheaval he has caused in the federal government" by helming President Donald Trump's DOGE operation, The Washington Post said. Musk defended his DOGE work in a call with Wall Street analysts but said he would be "allocating far more of my time to Tesla" starting next month and spending just "a day or two per week on government matters."
Tesla's 13% drop in global vehicle sales last quarter was due to "intense competition from Chinese carmakers" and its "lack of new models," not just Musk's support of Trump and "far-right causes," The New York Times said. Musk said Tesla's future was in artificial intelligence and long-promised fully autonomous vehicles.
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What next?
Tesla shares, down more than 40% this year, rose 5% in extended trading as investors took "comfort in Tesla reaffirming plans to launch more affordable models later this year," The Wall Street Journal said. But the company has not "displayed a prototype or provided many details about" this cheaper model, the Times said, and "analysts doubt" it will roll out "anytime soon."
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