Tesla’s Profits Crash 71%: Is Elon Musk’s DOGE Obsession Sinking the EV Giant?

Tesla’s stock price is wobbling, protests are erupting at showrooms, and Elon Musk insists his government work isn’t to blame. With profits plunging 71% and EV dominance slipping, can Musk refocus—or is this the beginning of the end? Let’s dive in.

🚨 Tesla’s Perfect Storm: Profits, Politics, and Protests
Tesla’s Q1 2025 earnings reveal a company in crisis. Here’s what’s going wrong:

• 📉 71% Profit Plunge: Net income crashed year-over-year, with automotive revenue dropping 20%.
• 🔋 EV Market Mismatch: While global EV sales grew 7%, Tesla deliveries fell 13%—their worst quarterly decline ever.
• 🚗 Brand Backlash: Musk’s alignment with Trump and DOGE cost-cutting has alienated Democrats—EVs’ core buyers. Protests and vandalism at Tesla stores are now routine.
• 💸 Used Car Crisis: Tesla’s used vehicle values dropped 10% (vs. 1% industry-wide), hurting owners and the company’s leased-car assets.

✅ Musk’s Pivot: Less DOGE, More Robots?
Musk claims he’s shifting focus back to Tesla, but with caveats:

• ⏰ “Mostly Done” with DOGE: Musk will cut DOGE work to “a day or two per week,” claiming his federal cost-slashing mission is “mostly done.”
• 🤖 Betting on AI: Tesla’s future hinges on robotaxis and autonomous tech, not cars. Musk insists Tesla will dominate AI, dismissing Chinese rivals as “rank 2-10.”
• 📈 Investor Relief: Shares rose after-hours as analysts like Dan Ives called this the “beginning of the end” of Musk’s DOGE era.

🚧 Roadblocks Ahead: Politics, Prices, and BYD
Tesla’s challenges go beyond Musk’s schedule:

• 🗳️ Partisan Polarization: Tesla’s protestors (unpaid, per Tesla Takedown) see the brand as a MAGA symbol. Musk dismisses critics as “paid” actors protecting “wasteful” spending.
• 🇨🇳 China’s EV Onslaught: BYD now rivals Tesla globally, while U.S. rivals like GM and Toyota grow EV sales despite Tesla’s slump.
• 🔋 No New Models: Tesla’s aging lineup lacks affordable EV options. Musk offered no concrete plans beyond vague AI promises.

🚀 Final Thoughts: Can Musk Steer Tesla Back?
Tesla’s survival hinges on three factors:

• ✅ Musk’s Focus: If DOGE work truly winds down, can he revive innovation?
• 📉 Brand Detox: Can Tesla shed its political baggage to win back liberal buyers?
• 🚗 China vs. Silicon Valley: Will Musk’s AI bets outpace BYD’s manufacturing might?

Musk remains defiant: “We’re not on the ragged edge of death.” But with used Teslas depreciating faster than ICE cars and protests escalating, the market isn’t so sure. What do you think—can Tesla recover, or is this the EV pioneer’s twilight?

Let us know on X (Former Twitter)

Sources: Camila Domonoske. As Tesla profits plunge 71%, Elon Musk says he'll spend less time on DOGE, April 23, 2025. https://www.npr.org/2025/04/22/nx-s1-5371552/tesla-earnings-april-2025-elon-musk-doge