The company has faced backlash and angry protests over Musk’s leadership of the Department of Government Efficiency.

The Austin, Texas, company said Tuesday that quarterly profits fell by 71%, far below analyst estimates. And Tesla’s revenue fell 9% in the January through March period, below Wall Street’s forecast.

Tesla’s stock has fallen more than 40% this year but rose slightly in after-hours trading.

JUST IN: Elon Musk says starting in May his time spent with DOGE will ‘drop significantly’ and he’ll allocate more time to Tesla

Live updates: Elon Musk plans to scale back at DOGE and dedicate more time to Tesla

Follow the latest news on President Donald Trump and his administration | April 22, 2025

Billionaire Elon Musk, a key adviser of President Donald Trump, says he’ll dedicate more time to Tesla starting in May after the company reported a big drop in first-quarter profit. The company has faced backlash and angry protests over Musk’s leadership of the Department of Government Efficiency, or DOGE, a federal government jobs-cutting group.

Tesla, based in Austin, Texas, said Tuesday that quarterly profits fell by 71% to $409 million, or 12 cents a share.

Other news we’re following:

• RFK Jr. plans to phase out artificial dyes from food supply: U.S. health officials will work to remove petroleum-based artificial colors. Health advocates have long called for the removal of artificial dyes from foods, citing mixed studies indicating they can cause neurobehavioral problems in some children. The FDA currently allows 36 food color additives, including eight synthetic dyes.
• Wall Street rallies: Companies reported fatter profits than expected, and other U.S. investments are steadying a day after falling sharply over worries about Trump’s trade war and attacks on the head of the Federal Reserve. The S&P 500 rose 2.5% Tuesday to erase Monday’s loss. The value of the U.S. dollar also stabilized after sliding against the euro and other competitors, while Treasury yields held steadier in the bond market.
• Pete Hegseth denies sharing classified information – again: The defense secretary pulled the airstrike information he posted in Signal chats with his wife, brother and dozens of others from a secure communications channel used by U.S. Central Command. The information posted in the second chat was identical to the sensitive operations details shared in the first chat that accidentally included a journalist.
• Treasury secretary calls trade war with China unsustainable: Scott Bessent said he expects a “de-escalation” in the trade war between the world’s two largest economies. “Neither side thinks the status quo is sustainable,” Bessent said according to a transcript obtained by The Associated Press.
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