Tesla CEO Elon Musk is facing a corporate reckoning on Tuesday, with the electric car maker’s first-quarter results showing sales and profit fell short of analyst expectations while the billionaire was focused on leading the Trump administration’s cost-cutting efforts.
Ahead of the quarterly report, investors submitted questions to Tesla they hoped to get answered during the company’s earnings conference call. A top issue flagged by investors is Elon Musk himself, with dozens asking about his focus on the Trump administration’s Department of Government Efficiency, or DOGE, and when he might redirect his energies to running Tesla.
“Can Elon please provide some reassurance that at some point soon he will be done with DOGE and politics?” one investor asked. “Many Tesla shareholders wish he would reprioritize the majority of his time and effort to engineering.”
That’s a question that Wall Street also wants answered. Tesla’s stock price has plunged 53% from its most recent high in December, when the stock was pushed higher after President Trump’s electoral victory on optimism that Musk’s role advising Mr. Trump would help the EV maker’s bottom line.
But Musk’s activities with DOGE — including cutting tens of thousands of federal workers and accessing taxpayers’ personal data — have alienated some consumers and sparked protests across the globe, causing the stock price to deflate.
Tesla’s earnings report didn’t disclose details about Musk’s DOGE work or his plans for Tesla, but the company cautioned that “trade policy” and “changing political sentiment” could impact demand for its products in the near term. Mr. Trump’s tariffs are expected to result in higher prices for many vehicles, including Teslas.
The company’s first-quarter results were “grim,” equity analyst Adam Crisafulli of Vital Knowledge said in a note to investors. [E]xpectations were very low, but these are still bad numbers.”
Tesla’s transformation into a symbol of the Trump administration has dampened demand for the vehicles, and could reduce demand for Tesla vehicles by 15% to 20% due to consumers who don’t want to be associated with the billionaire, Wedbush analyst Dan Ives said in a research note.
“Musk needs to leave the government, take a major step back on DOGE, and get back to being CEO of Tesla full-time,” Ives concluded.
What time is the Tesla earnings call?
The Tesla earnings call will be webcast at 5:30 p.m. ET here.
Tesla’s earnings fell short of analyst expectations. The company reported a per-share profit of 27 cents, compared with an average forecast of 41 cents per share, according to analysts surveyed by FactSet.
Net income tumbled 71% to $409 million, versus $1.39 billion in the year-earlier quarter. Sales slid 9% to $19.3 billion, far short of the $21.3 billion expected by analysts.
Tesla shares, which have fallen 41% this year, were largely flat in after-hours trading.
Earlier this month, Tesla said its delivery of vehicles in the first three months of 2025 fell nearly 13% as demand for the automaker’s electric cars continued to weaken, with deliveries also falling well short of analysts’ expectations.
In assessing Tesla’s latest financial results, Crisafulli thinks Tesla boosters are likely to focus on the company’s plan to start testing its Robotaxi and a humanoid robot called Optimus later this year, as well as beginning production of a lower cost vehicle in the months ahead.
But more bearish observers will conclude “there’s no reason to think things are about to get a lot better” at Tesla, he said, adding that its Robotaxi service is well behind Alphabet’s Waymo self-driving vehicle rollout.
Under this view, “Musk’s personal brand has been permanently tarnished by his political activities in the last several months, and exiting DOGE won’t change that. On top of all this, the stock remains very expensive,” Crisafulli said.
In addition to insights into Musk’s role at Tesla, investors will also be listening 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.
