Elon Musk accepts the undeniable truth behind Tesla's staggering decline

The EV giant earned just $409 million compared to $1.4 billion during the same period last year.

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Tesla’s stock has plummeted nearly 40% since January, coinciding with Musk’s increased political involvement.

Washington D.C.: Elon Musk has announced he will dedicate more time to Tesla starting in May, acknowledging that his role as "First Buddy" will "drop significantly" after the company reported a massive 71% decline in first-quarter profits. The electric vehicle (EV) giant earned just $409 million compared to $1.4 billion during the same period last year, sparking concern among investors.

Tesla’s declining sales, stock volatility, and even incidents of vehicles catching fire have further complicated Elon Musk's tenure at DOGE.

Tesla’s stock has plummeted nearly 40% since January, coinciding with Musk’s increased political involvement, including his role in the Department of Government Efficiency (DOGE). During Tesla’s earnings call, shareholders pressed Musk on whether he would refocus on the automaker. One investor bluntly asked, "Can Elon please provide some reassurance that at some point soon he will be done with DOGE and politics?"

Musk responded by stating that his DOGE commitments would decrease "significantly" in May, though he still plans to spend one to two days per week on political activities. He admitted that his political ventures may have hurt Tesla in the short term, but also blamed broader economic challenges. "This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products," he said.

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Protests at Tesla dealerships have intensified, with advocacy group Tesla Takedown claiming credit for the sales slump, declaring, "The Tesla Takedown grassroots pressure is beginning to hit Tesla where it hurts: the company’s bottom line."

Despite remaining the top-selling EV brand in the US, Tesla faces fierce competition. Chinese automakers like BYD and NIO are advancing battery technology, while Rivian, Hyundai, and GM are closing the gap with longer ranges and lower prices.