Tesla in Turmoil: Musk’s Dual Role Comes at a Cost

Tesla is off to a rough start in 2025, with first-quarter earnings plunging 71%. At the same time, the company faces global backlash over Elon Musk’s involvement in Donald Trump’s administration—protests that have sparked unrest and vandalism at Tesla dealerships around the world.

Vehicle sales have dropped significantly, with automotive revenue down 20% compared to last year.

Overall revenue fell 9%, landing at $19.3 billion. While Musk attributed part of the slowdown to production upgrades, analysts say his political role is weighing heavily on the brand.

Protestors paid with fake money

During the earnings call, Musk addressed the protests and, without providing evidence, claimed demonstrators were “being paid with fake money.”

He also announced he’ll be scaling back his time in the Trump administration starting next month.

Analysts like Daniel Ives warn that Musk is at a crossroads: either the brand suffers permanent damage, or his return as full-time CEO helps restore investor confidence.

Tesla’s stock has tumbled roughly 50% since December, and public sentiment is shifting. Musk’s political gamble is taking its toll—and Tesla’s future may depend on where he chooses to focus his energy next.

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