Tesla's visionary chief, Elon Musk, has announced that he's significantly stepping back from his controversial role in Washington as the electric car maker grapples with a sharp decline in profits and revenues.

In a concerning first-quarter report for 2025, Tesla revealed a staggering 20% drop in automotive revenue compared to the same period last year, with profits plunging more than 70%. This downturn has sent shockwaves through investor confidence, leading the company to avoid offering an optimistic growth forecast.

The company cited "changing political sentiment" as a potential factor that could dampen demand further, coinciding with Musk's increasing presence in the political arena, particularly under Trump’s administration.

Musk's political engagements, including a hefty contribution of over $250 million to Trump's re-election campaign and his leadership of the controversial Department of Government Efficiency (Doge), have stirred significant backlash and protests against Tesla globally.

In light of the company's struggles, Musk declared his intention to dramatically decrease his time dedicated to Doge, committing only one to two days a week to government activities, aligning his focus back on Tesla.

Despite Tesla generating $19.3 billion in revenue for the quarter—down 9% year-on-year and falling short of the $21.1 billion forecast by analysts—Musk remains optimistic about mitigating the impacts of Trump’s tariffs on China, which threaten to increase costs and complicate supply chains.

While Tesla’s market adaptations could help alleviate some pressures, the effects of tariffs are still significant for a company operating on slim margins. Musk continues to push for lower tariffs, emphasizing that despite localized supply chains, external trade policies still present formidable challenges.

As investors remain skeptical about the future, with Tesla's shares dropping about 37% this year alone, analysts are voicing concerns that the company’s increasing issues stand to create serious hurdles ahead—especially as the electric vehicle market grows fiercer.

With Tesla’s challenges mounting, the world watches closely to see if Musk can navigate this turbulent landscape and steer his company back to profitability.