Tesla's 71% Profit Drop: Elon Musk Changes role TSLA raised 7% in Pre-Market

Table of Contents

• Tesla’s Profit Decline

• Elon Musk and Dogecoin

  • Musk's Decision to Reduce DOGE Role

  • Impact on the DOGE Market

  • Market Volatility: Impact on Major Stocks

• Tesla’s Long-Term Strategy

• Closing

• Frequently Asked Questions (FAQs)

  • Why are Tesla profits down?

  • What is the role of Elon Musk in Tesla?

  • How long was Tesla unprofitable?

  • Is Tesla struggling financially?

Elon Musk just made a bold move, he’s stepping back from government work. 

But why? So he can spend more time where it all began: Tesla. What’s driving this shift?

Tesla's stock jumped 7% in Pre-Market after the news. Investors believe Musk’s focus could help turn things around. Tesla has been struggling with falling sales and profits. Let’s talk in detail.

In recent news, Tesla's profit has taken a significant hit, dropping by 71% since last year. This sharp decline has left many questioning what's next for the electric car giant. But there’s more to the story than just numbers. Elon Musk, the face of Tesla, has also made waves in the cryptocurrency world, particularly with Dogecoin (DOGE). 

For years, Musk has strongly supported Dogecoin and helped it grow in the market. However, his latest move has caught the attention of both investors and crypto enthusiasts.

We’ve seen how Musk’s tweets and comments can send Dogecoin soaring or crashing. But now, Musk seems to be shifting gears. In response to Tesla’s financial struggles, he reduced Dogecoin’s role at Tesla. 

So, what’s behind this move, and what does it mean for both Tesla and Dogecoin? Let’s explore the impact of this decision.

Tesla’s Profit Decline

Tesla's revenue for Q1 2025 fell to $19.3 billion, missing Wall Street's expectations of $21.1 billion. Automotive revenue dropped 20% year-over-year to $13.9 billion. 

The company also experienced a 13% decline in vehicle deliveries. The downturn is due to production issues, supply chain disruptions, more competition from Chinese and European EV makers, and rising operational costs.

Additionally, political controversies surrounding Musk's affiliations have led to public backlash, further affecting Tesla's brand image and sales. ​

Elon Musk and Dogecoin

Elon Musk has been a prominent supporter of Dogecoin (DOGE), a cryptocurrency that started as a meme. In 2021, Tesla started accepting DOGE for some products, showing Musk's influence. His tweets and endorsements have caused big changes in DOGE’s price. This connection has also increased market volatility and speculation.

Musk's Decision to Reduce DOGE Role

In light of Tesla's financial challenges, Musk has announced plans to scale back his involvement with DOGE. Starting in May 2025, Musk will spend more time at Tesla, cutting his government duties to one or two days a week. 

This shift aims to focus on Tesla’s core operations and performance. He admitted that his dual roles caused distractions. It impacts investor confidence and Tesla’s market position.

Impact on the DOGE Market

Musk's reduced involvement with DOGE has led to a decline in the cryptocurrency's value. After Musk's announcement, DOGE's price dropped, showing investors worry about the coin’s future without his support. The wider crypto market also faced uncertainty, with more volatility and changing views on meme coins. This highlights Musk’s strong influence on DOGE's value.

Market Volatility: Impact on Major Stocks

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The stock market is facing uncertainty due to inflation and interest rate changes. Central banks might raise rates to control inflation, which worries investors. Geopolitical tensions, supply chain problems, and changes in tech investments are also causing market swings. 

Tesla (TSLA) dropped 41% and other big stocks like Apple, GOOG, Amazon, and Nvidia fell by 3% to 6%. This shows that even big tech companies are not safe from market changes. Investors are now waiting for economic data and central bank decisions before making moves.

Tesla’s Long-Term Strategy

Despite the current challenges, Tesla remains committed to its long-term vision of sustainable energy and innovation. The company plans to launch a more affordable Model Y and introduce a driverless robotaxi service in Austin by June 2025. 

These initiatives aim to increase market accessibility and strengthen Tesla's position in the electric vehicle industry. Musk's renewed focus on Tesla's core business operations is expected to drive these projects forward, with an emphasis on profitability and operational efficiency. ​

Closing

Tesla's 71% profit drop in Q1 2025 highlights the challenges the company faces in a competitive and politically charged environment. Elon Musk's decision to reduce his involvement with DOGE reflects a strategic shift to concentrate on Tesla's core operations. 

Investors and stakeholders will be closely monitoring these developments to assess their implications for both Tesla and the broader cryptocurrency market.​

Frequently Asked Questions (FAQs)

Why are Tesla profits down?

Tesla's Q1 2025 profits fell 71% to $409 million due to production delays, increased competition, and rising costs. Price cuts and AI investments also impacted margins. 

What is the role of Elon Musk in Tesla?

Elon Musk is Tesla's CEO and primary decision-maker. He leads product development, oversees operations, and drives the company's strategic direction. ​

How long was Tesla unprofitable?

Tesla faced losses from 2008 until Q2 2020. Since then, it has reported consistent profits, except for Q1 2025. ​

Is Tesla struggling financially?

Yes, Tesla is facing financial challenges. Q1 2025 profits dropped 71%, and stock value declined over 40% in 2025.