Elon Musk is feeling the heat. In the wake of a shocking 71% drop in Tesla’s Q1 profits, the billionaire CEO is quietly stepping back from his controversial role in the Trump administration’s “Department of Government Efficiency” (DOGE). Once hailed as a tech messiah, Musk is now scrambling to restore investor confidence as Tesla faces mounting pressure from global EV competition, declining margins, and growing doubts about his leadership focus.

Q1 2025: Tesla’s Worst Quarter in Years

Tesla reported just $409 million in net income for the first quarter of 2025 — a staggering drop from over $1.4 billion the same time last year. Revenue also fell 9% to $19.3 billion, and gross margins slid to 16.3%, the lowest since 2017. Unit sales were down 13%, marking the company’s sharpest decline to date.

The Cybertruck rollout continues to underwhelm, with delays, glitches, and quality complaints piling up on social media. Meanwhile, Tesla’s price-cutting strategy has failed to stop customer attrition, especially in China and Europe, where local EV makers offer more value.

Musk Retreats from Politics… Sort Of

Musk’s decision to “scale back” involvement in DOGE, the federal program he was appointed to lead under President Trump, comes amid shareholder outrage. While DOGE was intended to streamline government bureaucracy, it quickly became a lightning rod for controversy after Musk spearheaded massive public sector layoffs.

In a brief comment posted to X (formerly Twitter), Musk wrote:

“Tesla is my priority. We’re entering a crucial phase of innovation and expansion.”

Though he plans to finish his current term with DOGE, Musk reportedly will reduce public appearances and shift day-to-day duties to surrogates.

Can Tesla Turn It Around?

Musk claims Tesla is on the brink of its “next great leap,” pointing to the long-promised $25,000 EV and autonomous robotaxi fleet. But timelines remain fuzzy, and Wall Street is losing patience. Analysts have downgraded Tesla stock and warned that without clear execution and leadership focus, Tesla could continue sliding.

Meanwhile, competitors like BYD, Hyundai, and GM are charging ahead, gaining global EV market share. Tesla’s cult-like brand loyalty is being tested—and for the first time, many are openly questioning whether Musk still has the focus to lead.

Market Reaction

Following the earnings report and Musk’s announcement, Tesla shares initially dropped but rebounded slightly, trading at around $285 per share. Still, the stock remains down nearly 50% from its 2024 highs.

Final Thoughts

Elon Musk has made a career out of defying expectations, but 2025 may be his most difficult chapter yet. Backing away from DOGE could be a sign that he’s ready to double down on Tesla—or it might be too little, too late.

Either way, investors, fans, and critics are watching closely. For the first time in years, the question isn’t what will Musk do next?—it’s can he still deliver?