April 23, 2025 | 02:56 pm
TEMPO.CO, Jakarta - Elon Musk, the billionaire CEO of Tesla, has announced that he will gradually reduce his involvement in the administration of U.S. President Donald Trump to dedicate more time to running his company, Tesla.
Since joining the Trump administration, Tesla has faced a significant decline in both sales and revenue for the first quarter of the year.
Tesla's total revenue from car sales dropped by 20 percent, and its net profit plunged by a staggering 71 percent in the first quarter of 2025. In a conference call with investors, Musk stated that starting next month, he would allocate more of his time to Tesla.
He will spend only one or two days per week on government-related matters, as long as President Trump continues to request his involvement.
Musk did not directly address the impact of his involvement in the Trump administration on Tesla's performance. He has been a strong advocate for significant federal workforce cuts and has spread his DOGE data team throughout the government.
Tesla's total revenue dropped by 9 percent to US$19.3 billion in the first quarter of 2025, compared to the same period in 2024. The company attributed the sharp decline to lower vehicle deliveries and reduced vehicle prices. Operational revenue also fell 66 percent to US$0.4 billion.
Musk has been an outspoken critic of the tariffs imposed by President Trump. In the earnings report, he stated that Tesla’s sales were not significantly affected by the import tariffs under Trump’s administration.
"I'll continue to advocate for lower tariffs rather than higher tariffs but that's all I can do," Musk said.
Tesla has been one of the companies impacted by Trump’s import tariffs. In China, consumers have stopped ordering Tesla electric vehicles, leading the company to suspend new orders for its Model S and Model X vehicles on its Chinese website as of Friday, April 11, 2025.
According to reports from Channel News Asia and CNN, the cancellation of orders occurred after the ongoing tariff war between the U.S. and China intensified. Both models are manufactured in the United States and imported to China.
New orders for these two models are no longer available on the automaker's Chinese WeChat Mini Program.
However, consumers can still order the Model 3 and Model Y in China.
In 2024, Tesla imported 1,553 units of the Model X and 311 units of the Model S to China. These two models accounted for less than 0.5 percent of Tesla's total deliveries, which exceeded 657,000 vehicles last year.
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