Musk announces withdrawal from politics - Tesla is fighting for the future!

Musk announces withdrawal from politics - Tesla is fighting for the future!

Elon Musk, the richest person in the world and former close ally of Donald Trump, sees his influence in Washington. In a latest signal, Trump Musk asks more to concentrate more on his companies, Tesla and SpaceX, as well as the innovation in the automotive and space industry instead of continuously interfering in politics. In particular, Trump is praising Musk for his support in the past election campaign, in which Musk invested over $ 250 million.

Nevertheless, Musk, whose political activities and positions recently led to a decreasing popularity, decided to continue to work for Trump one or two days a week as long as the president wishes. This happens in view of a dwindling influence, especially after the loss of a candidate in Wisconsin he supported, which also weakens his support in the White House. Reporting about this development, points out vienna.at It is that Musk also feel the effects of his political role on Tesla's business.

Economic challenges for Tesla

Tesla's problems are increasingly emerging. The electric car manufacturer reported a drop in sales from 9 % to $ 19.3 billion in the first quarter of 2025, while the profit fell by 71 % to just $ 409 million. Analysts had expected a higher profit per share, but this was only $ 0.27, while $ 0.39 were expected. These challenges are increased by the concern that Musk's political role could press the demand for Tesla's vehicles by 15 to 20 %, as Analyst Dan Ives reports. Around 50 % of the respondents are negative about Musk and 47 % negatively about Tesla, which also contains the company's strategy.

In order to fight the decline in sales, Musk plans to start the production of cheaper model variants in the first half of 2025. In addition, the function for autonomous driving in several US cities is to be released for private individuals this year, with Musk relying on cameras and AI software instead of using the more expensive laser radars. These measures are crucial to regain consumers' trust and to secure Tesla's market share.

Political influences and future prospects

The political background cannot be neglected. ZDF.de reports on the concerned voices of Robert Habeck, who warn of a "neofeudal system", in which billionaires such as Musk and Trump increasingly influence the government. Although Musk is regarded as a driving force of e-mobility, the support of fossil fuels could be harmful in the long term by Trump. The economy Ulrike Malmendier points out that Tesla's value is not only based on the economic model, but also depends heavily on Musk's public persona.

In view of all of these factors, Musk announced that they want to spend less time in the Department of Government Efficiency (Doge) from May 2025. He emphasizes that the work to draw up the Doge team is mainly completed. This could be a return to his roots at Tesla, but whether this step is sufficient to lead the brand out of the crisis is in the stars. The challenges of the political arena and the economic realities with which Tesla is confronted will undoubtedly still have a major impact on the future development of the company, such as Br.de summarize.