Musk Announces Return to Tesla as Political Ambitions Backfire and Profits Plunge.
Elon Musk is now reaping the consequences of his own choices. After chasing power and political influence over performance, the Tesla CEO has seen his company’s profits nosedive, his reputation tarnished, and his once-loyal customer base turned against him. The man who once styled himself as a visionary now finds himself at the center of a self-inflicted storm—one driven by ego, greed, and an astonishing misjudgment of public sentiment.
Tesla reported a staggering 70% drop in profits and a 20% decline in automotive revenue for the first quarter of 2025, compared to the same period last year. Total revenue for the quarter came in at $19.3bn (£14.5bn)—a sharp fall from analyst expectations of $21.1bn and 9% down year-on-year. The company’s woes were underscored by a 13% drop in vehicle sales, the worst in three years.
Investors were already bracing for bad news after months of growing backlash over Musk’s deepening involvement in Donald Trump’s administration. Musk had positioned himself as a major political player, contributing over $250 million to Trump’s re-election campaign and heading the ironically named Department of Government Efficiency (Doge), tasked with slashing federal spending and the public workforce.
But that political gamble has clearly backfired. As Tesla’s performance faltered, the company admitted that “changing political sentiment” was beginning to hit demand. Boycotts and protests against Musk and Tesla erupted globally, with customers and stakeholders expressing outrage over his priorities.
In a tone-deaf attempt to save face, Musk announced he would scale back his government duties. “My time allocation to Doge will drop significantly,” he said, pledging to limit his involvement to just one or two days a week. He insisted, “getting the government house in order is mostly done,” trying to cast himself as a public servant just as his corporate empire falters.
But the damage is done—and it’s no one’s fault but Musk’s. He chased power over purpose, politics over product, and now Tesla is paying the price.
Musk blamed the backlash on his critics, claiming “people try to attack me and the Doge team,” while still defending his role as “critical.” Yet the numbers tell a different story. Shares in Tesla are down 37% year-to-date, despite a modest 5% bump in after-hours trading following the dismal results.
Even the company’s attempts to spark growth by slashing prices couldn’t offset the blow from Trump’s aggressive China tariffs, which have disrupted Tesla’s supply chain despite Musk’s claims that their global operations offer insulation. “Tariffs are still tough on a company where margins are low,” he admitted, even as he claimed Tesla was better positioned than competitors.
The public isn’t buying it—and neither are analysts. Dan Coatsworth of AJ Bell described expectations for Tesla as “rock-bottom”, warning of mounting risks from global supply disruptions. Meanwhile, Georg Ell, former Tesla executive, struck a more personal tone: “If [Musk] focuses on the companies where he is extraordinary, I think people will focus once again on the quality of the product and experiences.” But he also noted that Musk is a “single-minded individual” who doesn’t embrace diverse perspectives—something that's clearly contributed to his downfall.
And therein lies the heart of it: Musk’s arrogance, his hunger for influence, and his inability to listen to dissenting voices have made him the architect of his own crisis. He wanted power, he wanted control, and now he’s lost billions—and the trust of many.
Conclusion - The Architect Of His Own Downfall
Elon Musk thought he could do it all—run Tesla, lead a government department, bankroll a political campaign, and still be hailed as a genius. But that illusion has shattered. His greed and desire for influence blinded him, and now he’s scrambling to regain control of a company he willingly neglected. Even as he retreats from politics, the damage is already done.
In my view, Musk deserves the fallout. You can’t chase power and ignore your responsibilities without consequences. No amount of PR spin will fix his reputation now—the trust is gone, and it’s not coming back.
