LAST UPDATE | 22 Apr

TESLA REPORTED A 71% drop in first-quarter profits as Elon Musk’s automaker warned of a hit to demand due to “changing political sentiment.”

The electric vehicle producer reported profits of $409 million, down 71 percent from the year-ago results.

The company retreated from its guidance issued for 2025, citing uncertainty about trade policy amid US tariffs against the car industry.

“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” Tesla said in a statement.

“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term.”

The backlash to the brand has come about amid Musk playing a key role in US government downsizing as one of Donald Trump’s White House advisers- and creating some uncomfortable moments for Irish owners in the process.

Activists have staged nationwide demonstrations against Trump or Musk multiple times since the new administration took power.

Protesters are assailing the Trump administration’s moves to fire thousands of federal workers, close Social Security Administration field offices, effectively shutter entire agencies, deport immigrants, scale back protections for transgender people and cut federal funding for health programs.

However, Musk plans to “significantly” reduce his work for Trump’s administration in May to focus on Tesla, the billionaire CEO said today.

“Probably in the next month, my time allocation to DOGE will drop significantly,” Musk said on an earnings conference call.

Analysts have warned of brand damage due to Musk’s work on behalf of Trump for the “Department of Government Efficiency.”

With reporting by – © AFP2025