Today's News: Tesla Earnings Plunge Amid Political Backlash Against Elon Musk

Tesla reported a 71% drop in first-quarter profit, with revenue falling 9% and vehicle deliveries down 13% year-over-year. Musk announced he will scale back his time at DOGE starting in May.

Terrence Dorsey

Apr 22, 2025

Photo: Brandon Bell/Pool/Reuters

Date: April 22, 2025
Topic: Tesla Q1 Earnings Plunge Amid Political Backlash Against Elon Musk’s Trump Administration Role
Summary: Tesla reported a 71% drop in first-quarter profit, with revenue falling 9% and vehicle deliveries down 13% year-over-year. The plunge coincides with Elon Musk’s high-profile involvement in the Trump administration’s Department of Government Efficiency (DOGE), which has drawn criticism, protests, and vandalism targeting the Tesla brand. Musk announced he will scale back his time at DOGE starting in May, citing the completion of initial restructuring efforts. Analysts and investors blame political entanglements, trade policy uncertainty, and increased competition, particularly from Chinese automakers, for Tesla’s poor financial performance and eroding brand perception.

Sources

Key Points

Tesla reported a 71% drop in net income and a 13% decline in vehicle deliveries.
Elon Musk stated he will reduce his time spent at DOGE starting in May.
Musk’s political alignment and DOGE leadership role have triggered global protests and consumer backlash.
Trade policy uncertainty and new tariffs are complicating Tesla’s supply chain and cost structure.
Tesla reaffirmed plans to launch lower-cost vehicles and autonomous robotaxis despite near-term challenges.
Revenue fell sharply in key regions, including the U.S., China, and Germany, with increased EV competition cited as a factor.

Unique Highlights

The New York Times noted Tesla would have posted a loss if not for $400M in interest income and $595M from regulatory credits.
CNN highlighted European sales slumps linked to Musk’s far-right political support in Germany and the UK.
NBC News cited a CNBC poll showing public sentiment toward Musk and Tesla has turned sharply negative.
Fox Business emphasized growth in Tesla’s energy generation (67%) and service (15%) businesses, despite the overall revenue decline.
The Washington Post described violent backlash, including vandalism with Molotov cocktails and arson, at Tesla sites.
The Wall Street Journal offered detailed data on regional delivery declines: down 22% in China and 62% in Germany.

Contrasting Details

CNN and NBC News emphasized Musk’s defense of DOGE and downplayed internal company problems, whereas The New York Times and The Washington Post stressed investor frustration and brand damage.
The Wall Street Journal and Fox Business presented a slightly more investor-optimistic view, pointing to planned launches of lower-cost models and robotaxis.
The Washington Post provided a stronger narrative on grassroots protests and the Tesla Takedown movement, which is less visible in the other sources.
CNN mentioned robotaxi deployment beginning later in the spring, while NBC News cited a June launch and regulatory filings, adding more operational detail.

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