MUSK LEAVES THE DOGE
The first quarter of 2025 was disastrous for Tesla, with a 71% drop in its net profit, reaching $409 million, and a 9% reduction in revenue, totaling $19.3 billion. This performance below expectations is attributed to several factors, the most relevant being Elon Musk's involvement in the Trump administration, which generated general discomfort and negatively affected the brand's image, leading to protests and vandalism. The growing competition from Chinese companies like BYD and the expansion of electric lines by traditional automakers also contributed to Tesla's loss of market share in European countries.
The Cybertruck is also experiencing sales far below expectations and the need for discounts to reduce inventory. To alleviate this, the plan is to launch a more affordable electric vehicle by June, investing in AI for the development of autonomous vehicles, although there is skepticism about the feasibility and timeline of these initiatives. The lack of forecasts for the remainder of the year increases the pressure.
In this scenario, investors are questioning Musk's ability to reconcile his responsibilities at Tesla with his government roles, seeing that he must dedicate himself fully to the company to try to regain market confidence and improve financial performance. Thus, Musk announced that he will drastically reduce his involvement in DOGE starting in May. This decision comes amid a decline in Tesla's profits (71% in the last quarter) and the need to focus on the company, particularly in the development of taxi and humanoid robots. Although Musk has stated that he will continue to dedicate some days a week to government matters, the reduction of his time on DOGE is significant.
The decision is also surrounded by speculation about political pressures, with reports that Musk is leaving the position due to attacks from the political left. His role in DOGE has never been clear as a "special government employee," and his advisory role in the department has generated controversy.
