In the first quarter of 2025, Tesla reported profits of $409 million, which represents a staggering decline of 71% compared to previous results. This decline stems from a significant drop in auto sales, alongside a backlash against CEO Elon Musk's association with a US government program led by President Trump that aimed at job cuts. In response to these challenges, Musk announced plans to reduce his work with the administration by May to focus more on Tesla's initiatives. The company is also looking to introduce more affordable vehicle models in an attempt to revive sales.
Tesla's first-quarter profits have fallen sharply, reporting $409 million, a decline of over 71% from previous quarters, attributing this to decreased auto sales.
Elon Musk is facing backlash over his involvement in a US government program aimed at job cuts, leading to concerns affecting Tesla's market performance.
To address the plummeting profits and negative public sentiment, Musk announced intentions to significantly reduce his commitments to the Trump administration by May.
Despite the financial downturn, Tesla plans to launch new electric vehicle models, including more affordable options, signaling a strategic pivot to regain customer interest.
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