Tesla profits plunge, but Musk promises to take the wheel again

Tesla has announced a dramatic 71% drop in net profit for the first quarter of 2025, landing at $409 million. On paper, that’s still a decent chunk of change — but compared to last year, it’s not just a step back; it’s a full-blown detour into the ditch.

Behind the decline are both global economic headwinds and Elon Musk’s personal “career pivot,” where he’s spent more time fine-tuning American governance efficiency (via DOGE, no less) than steering Tesla’s production lines. His outspoken support for Donald Trump hasn’t exactly helped, leaving a sour taste in the mouths of many longtime Tesla fans.

Following mounting pressure from investors and a steep slide in the stock price, Musk has now officially pledged to refocus on Tesla starting next month, putting politics on the back burner. The announcement gave Tesla’s stock a 5.5% boost — a modest rebound, though still far from erasing the nearly 50% drop since December.

To steer the company back on course, Tesla plans to launch more affordable versions of its popular models. However, the updated Model Y has already been mysteriously delayed. On the brighter side, development of Tesla’s long-promised robotaxi project is moving full speed ahead, with a launch scheduled for June in Austin, Texas.