After Profits Drop, Musk Says He'll Spend More Time at Tesla

Elon Musk says he'll dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. Tesla said Tuesday that quarterly profits fell by 70% to to $409 million, or 12 cents a share. That's far below analysts' estimates, the AP reports. Tesla's revenue fell 9% to $19.3 billion in the January through March period, also below Wall Street's forecast.

• The disappointing results come as the company is fighting a backlash due to Musk's leadership of a federal government jobs-cutting group that has divided the country and sparked angry protests. Musk also has publicly supported far-right politicians in Europe and alienated potential buyers there, too.

• Some Tesla investors have complained that Musk has been too distracted by his role at the Department of Government Efficiency, or DOGE, to effectively run Tesla. "This is a big step in the right direction," says Wedbush Securities' Dan Ives, referring to Musk's time commitment. "Investors wanted to see him recommit to Tesla."
• Musk told Wall Street analysts he would probably continue to spend "a day or two per week" on government business" while President Trump is in office, the New York Times reports.
• The company that once dominated EVs is also facing fierce competition for the first time. Earlier this year, Chinese EV maker BYD announced it had developed an electric battery charging system that can fully power up a vehicle within minutes. And Tesla's European rivals have begun offering new models with advanced technology that is making them real alternatives, just as popular opinion in Europe has turned against Musk.
• Investors expect Tesla will be hurt less by the Trump administration's tariffs than most US car companies because it makes most of its US cars domestically. But Tesla won't be completely unscathed. It sources some materials from abroad that will now face import taxes.
• Tesla told investors Tuesday that it remains on track for a "pilot launch" of its robotaxi service in Austin in June, CNBC reports. The company said it also plans to start producing humanoid robots at a California factory this year. Tesla is also expected to roll out a cheaper version of its best-selling vehicle, the Model Y SUV, later in the year.
• Tesla's stock is down almost 40% for the year so far, but it rose 4.6% in trading Tuesday and another 5.5% in after-hours trading.

(More Tesla stories.)