Elon Musk, CEO of Tesla, announced he would be minimizing his involvement in the Trump administration following a decrease in profits and sales for the electric vehicle manufacturer. This decline has been associated with backlash stemming from his political engagements.

Musk indicated that his commitment to the cost-saving initiatives at the Department of Government Efficiency (Doge) would be significantly reduced starting in May, allowing him to devote more time to Tesla.

In its latest financial report, Tesla revealed a 39% drop in adjusted net income, totaling $934 million, which fell short of analysts’ predictions of $1.4 billion. Additionally, revenue saw a decline of 9.2%, coming in at $19.3 billion, whereas forecasts had anticipated $21.3 billion. Due to this uncertainty, Tesla has refrained from providing guidance on production volumes for the current year and plans to reassess its 2025 projections during the second-quarter earnings call.

For the first quarter, Tesla’s sales nosedived by 13%, with 336,681 vehicles sold compared to 386,810 during the same period the previous year. This downturn included declines in key markets such as China and California, Tesla’s largest market in the United States.

Musk stated his commitment would be to address government matters only one to two days per week, contingent on the president’s wishes and the perceived usefulness of his involvement.

He remains optimistic that Tesla will return to a growth trajectory this year, following a drop in annual deliveries for the first time in 2024.

The company has faced protests, vandalism, and consumer boycotts linked to Musk’s advisory role in federal spending cuts under President Trump. Additionally, Musk’s support of far-right political factions in Germany and elsewhere has garnered criticism.

Musk asserted that the protests and boycotts against Tesla were initiated by individuals attempting to undermine him and the Doge team. Nonetheless, he emphasized the importance of his role at Doge, claiming that significant progress had been made in governmental efficiency.

Tesla has remarked that the ongoing trade conflict instigated by President Trump has negatively affected the global supply chain and cost structure for Tesla and its competitors. They noted that such political dynamics could significantly impact product demand in the near future.

The company pledged to continue advancing its autonomous robotic technology across various applications despite navigating challenging policy climates. It faces heightened competition from brands like BYD and numerous emerging Chinese electric vehicle manufacturers.

Last year, Tesla abandoned plans for a new low-cost model, opting to develop more affordable versions using existing platforms instead.

So far this year, Tesla’s stock has experienced a 37% decline, withTesla short-sellers reportedly profiting by an estimated $11.5 billion. On Tuesday night, shares rose by $1, or 0.4%, to $237.97 in after-hours trading.