Elon Musk says he will dedicate more time to Tesla and significantly less to Donald Trump’s jobs-cutting group after the electric car company reported a big drop in first-quarter profit.

Tesla has faced angry protests and falling sales over Musk’s leadership of DOGE (Department of Government Efficiency), which has divided the country.

Its first-quarter profits have plunged by more than two-thirds amid the backlash.

The Austin, Texas, the company said on Tuesday that quarterly profits fell by 70 per cent to $US409 million ($638 million), or 12 cents a share – far below analyst estimates. Tesla’s revenue fell 9 per cent to $US19.3 billion ($30.1 billion) in the January through March period, below Wall Street’s forecast.

Musk told an investor call he would drop back to one to two days a week with DOGE from May, declaring that most of its work had already been done. He acknowledged there had been “some blowback” for the amount of time he had been spending with the department.

“There are some challenges, and I expect that… [there] will probably be some unexpected bumps this year,” he said, before adding that the company’s future was still bright.

Along with his involvement with the US government and DOGE, Musk has publicly supported far-right politicians in Europe and alienated potential buyers there also.

Many investors have also complained Musk is too distracted with his Trump administration role to be running Tesla and that he should either relinquish his position as CEO or abandon his advisory role in Washington.

Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the results almost predictable.

“They’re not particularly surprising given that deliveries were down,” Goldstein said, adding that the company is still generating cash. “It was good to see positive cash flow.”

Tesla will hold a conference call to review the quarterly results and give a company update later Tuesday afternoon.

Tesla investors will be listening closely 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.

The company that once dominated EVs is also facing fierce competition for the first time.

Earlier in 2025 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.

Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.

-AAP