Musk Shifts Focus to Tesla Amidst Trade Talks and Share Surge
Elon Musk reduces government role, boosting Tesla shares as trade tensions ease, but profits drop 71% amid criticism of his political involvement.
U.S. stocks rallied on Wednesday, one day after President Donald Trump said tariffs on China would "come down substantially."
US stocks rally as Trump signals thaw in trade war, Tesla shares soar
ABC News·9d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.CenterThis outlet is balanced or reflects centrist views.
The damage to the Tesla brand by Musk may be far greater than Ives and other bulls admit.
Elon Musk is going back to Tesla. But is it too late to reverse the damage he’s done? | Business
CNN·9d·ReliableThis source consistently reports facts with minimal bias, demonstrating high-quality journalism and accuracy.Leans LeftThis outlet slightly leans left.
Judging by the billionaire’s compulsive inability to stop posting, coupled with China’s immense investment in the electric car market at a time when the global economic order is being rapidly upended, I wouldn’t bet that this is the company’s white knight moment.
Tesla’s Deadbeat CEO Is Coming Back
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Markets remain bruised — perhaps indefinitely so — by Trump's erratic policymaking.
Markets jump after Trump softens rhetoric on China and Fed chair
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Musk believes Tesla’s long-term future lies in these advanced technologies and maintains that if execution remains strong, the company could become the most valuable in the world.
Musk to devote less time to DOGE as Tesla earnings plummet
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Those dismal numbers reflect weakening demand around the world, as CEO Elon Musk has become involved in politics.
Tesla stock investors got good news from CEO Elon Musk, but Q1 earnings were a disaster
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Despite all this bad news, the bottom line remains in the black.
Tesla’s death is “not close” says Musk, as operating margin drops to 2%
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Another challenge to Tesla, which once dominated the EV business: It is facing fierce competition for the first time.
Musk says he'll spend less time in Washington and more time running Tesla after its profit plunges
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Trump placed import taxes of 145% on China, which countered with 125% tariffs on US goods, causing volatility in the stock market and concern about slowing global economic growth.
Trump news at a glance: president will be ‘very nice’ to China; Musk to step back from Doge
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Musk's electric vehicle brand has taken a massive hit due to his association with President Donald Trump's administration and protests against the Musk-led Department of Government Efficiency have broken out at Tesla dealerships throughout the country.
"Day or two per week": Musk promises decreased time at DOGE as Tesla profits plummet
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Musk and DOGE have slashed the agency that manages Social Security, as he’s falsely criticized America’s core safety-net program as a “Ponzi scheme.”
Elon Musk Complains About 'Paid' Protests on Call About Tesla's Poor Earnings
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Musk's controversial political work has significantly harmed Tesla's brand reputation, to multiple .
As Tesla profits plunge 71%, Elon Musk says he'll spend less time on DOGE
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The company that once dominated EVs is also facing fierce competition for the first time.
Musk says he'll step back from DOGE to focus on Tesla as company sees 71 percent drop in Q1 profits
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Tesla said it earned $409 million in net income on $19.3 billion in revenue, representing a 71 percent decrease in year-over-year income and a 9.4 percent decrease in revenue.
Musk Says His Time With DOGE Will ‘Drop Significantly’ Next Month
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Musk is anything but destroyed.
DAVID MARCUS: What America owes Elon Musk after DOGE
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Tesla's issues go beyond politics.
Elon Musk says his DOGE work will "drop significantly" starting in May
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Combined with other factors — including increased competition and Trump’s tariff mess — Musk’s involvement in the Trump administration helped drive a 71% drop in profit compared to the first quarter of last year.
Elon Musk says he may keep doing DOGE work for 'the remainder' of Trump's term
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The drop exceeded even some pessimistic Wall Street analysts’ predictions.
The Pressure Is on for Tesla's Cybercab
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Despite Tesla’s comparatively strong domestic supply chain, the automaker continues to grapple with higher production costs and rising competition from rivals, particularly Chinese manufacturers like BYD.
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Tesla's profits and automotive revenues plunged at the beginning of the year, as sales slumped and the brand faced backlash against boss Elon Musk's political activities.
Tesla profits plunge amid Musk backlash
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The disappointing results come as the company struggles to sell cars to consumers angry over Musk’s leadership of a federal government jobs-cutting group that has divided the country and sparked protests.
Boston Herald·10d·Mostly ReliableThis source is generally reliable but sometimes includes opinion, propaganda, or minor inaccuracies.Leans RightThis outlet slightly leans right.Tesla is fighting an enormous public backlash due to Elon Musk’s leadership of a federal government cost-cutting group that has divided the country and sparked angry protests at Tesla dealerships nationwide.
Tesla Q1 Profits Fall 70% as it Fights Backlash Tied to Musk
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Summary
Elon Musk announced he will significantly reduce his involvement with the Trump administration's Department of Government Efficiency, shifting back to Tesla. Despite a 71% profit drop and a 9% revenue decrease in Q1 2025, Tesla shares soared by 6%, buoyed by easing trade tensions and Musk’s renewed focus on the company. Musk described DOGE's work as nearly complete and reassured investors he would oversee the initiative until the end of Trump's term. Tesla aims to launch robotaxi services in Austin by June and develop advanced humanoid robots, despite facing significant challenges and criticism over Musk's political role.
Perspectives
Elon Musk plans to dedicate more time to Tesla starting in May, acknowledging that the backlash against his involvement in the Department of Government Efficiency (DOGE) has negatively impacted the brand and sales, although he remains engaged with the Trump administration for now.
Tesla's first-quarter earnings report revealed a staggering 71% drop in profits and a 9% decline in revenue, attributed to changing political sentiment, heightened competition in the market, and an outdated product lineup.
Musk defends the protests against him as being 'paid for' and continues to assert that demand for Tesla vehicles exists, despite analysts indicating that ongoing negative public sentiment is driving potential buyers away.
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