On automaker Tesla’s first quarterly earnings call of 2025, the electric vehicle manufacturer made a stunning admission that public animus toward CEO Elon Musk has directly contributed to its abysmal profits.
The New York Times reported Tuesday that Tesla’s first-quarter revenue was just $409 million, which is a 71% decrease from the $1.4 billion the company made in the first three months of 2024. And the company told investors on the call that the significant decrease in sales is partially due to “changing political sentiment” that “could have a meaningful impact on demand for our products in the near term” — an apparent reference to Musk.
Musk’s public role in President Donald Trump’s administration has resulted in widespread protests at Tesla dealerships across the country as part of the “Tesla Takedown” movement. That movement — launched by actor Alex Winter of the Bill & Ted franchise — has also caught on around the world, with protesters in Europe and Australia also demonstrating outside of Tesla dealerships in response to Musk’s role in the Trump White House.
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The electric vehicle company is also taking a beating as a result of Chinese competitors like BYD, which saw its sales jump by roughly 60% in the first three months of 2025. Additionally, established automakers like General Motors, Ford and BMW, along with newer companies like Rivian and Polestar have made a dent in Tesla’s sales by rolling out competing vehicles that could be seen as more appealing to liberal and centrist buyers.
Musk has signaled that he intends to leave the Trump administration soon, after his Department of Government Efficiency (DOGE) — with Trump’s blessing – has made deep cuts to multiple federal agencies and fired thousands of public workers. He indicated multiple times that he sought to cut Social Security to the tune of hundreds of billions of dollars, alleging without evidence that the agency was illegally giving money to undocumented immigrants and helping them register to vote (undocumented immigrants do not qualify for Social Security and voting while undocumented is already a felony crime).
But even if Musk walks away from his role in the Trump White House, Tesla investors may still be eager to oust him as the company’s CEO. Last month, a longtime Tesla investor called for Musk to resign as CEO or be dismissed by the company’s board.
“The company’s reputation has just been destroyed by Elon Musk,” investor Ross Gerber told Sky News in March. “Sales are plummeting so, yeah, it’s a crisis. You literally can’t sell the best product in the marketplace because the CEO is so divisive.”
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Click here to read the Times‘ full report (subscription required).
