Tesla CEO Elon Musk is facing a corporate reckoning on Tuesday with the electric car maker’s first-quarter results showing sales and profit fell short of analyst expectations while the billionaire was focused on running the Trump administration’s cost-cutting efforts.
Ahead of the quarterly report, investors submitted questions to Tesla that they hope to get answered on the company’s earnings conference call. A top issue flagged by investors is Elon Musk himself, with dozens asking about Musk’s focus on the Trump administration’s Department of Government Efficiency, or DOGE, and when he might return his energies to running Tesla.
“Can Elon please provide some reassurance that at some point soon he will be done with DOGE and politics?” one investor asked. “Many Tesla shareholders wish he would reprioritize the majority of his time and effort to engineering.”
That’s a question that Wall Street also wants answered. Tesla’s stock price has plunged 53% from its most recent high in December, when the stock was pushed higher after President Trump’s electoral victory on optimism that Musk’s role advising Mr. Trump would help the EV maker’s bottom line.
But Musk’s activities with DOGE — including cutting tens of thousands of federal workers and accessing taxpayers’ personal data — have alienated some consumers and sparked protests across the globe, causing the stock price to deflate.
Tesla’s earnings report didn’t disclose details about Musk’s DOGE work or his plans for Tesla, but the company cautioned that “trade policy” and “changing political sentiment” could impact demand for its products in the near term. Mr. Trump’s tariffs are expected to result in higher prices for many vehicles, including Teslas.
“Well, we are now at a major crossroads for the Tesla story in our view,” said Wedbush tech analyst Dan Ives in a research note before the earnings were released. “Tesla has now unfortunately become a political symbol globally of the Trump Administration/DOGE.”
Musk’s activities with DOGE could dampen demand for Tesla vehicles by a permanent 15% to 20% due to consumers who don’t want to be associated with the billionaire, he added.
“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives concluded.
The Tesla earnings call will be webcast at 5:30 p.m. ET here.
Tesla’s earnings fell short of analyst expectations. The company reported a per-share profit of 27 cents, compared with an average forecast of 41 cents per share, according to analysts surveyed by FactSet.
Net income slid 71% to $409 million, versus $1.39 billion in the year-earlier quarter.
Sales tumbled 9% to $19.3 billion, far short of the $21.3 billion expected by analysts.
While Tesla’s earnings release didn’t disclose any details about Musk’s DOGE work or his plans for Tesla, the company cautioned that “trade policy” and “changing political sentiment” could impact demand
Earlier this month, Tesla said its delivery of vehicles in the first three months of 2025 fell nearly 13% as demand for the automaker’s electric cars continued to weaken, with deliveries also falling well short of analysts’ expectations.
In addition to insights into Musk’s role at Tesla, investors will also be listening for updates on several strategic initiatives. The company is expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV, later in the year. Tesla has also said it plans to start a paid driverless robotaxi service in Austin, Texas, in June.
