Elon Musk has vowed to scale back his political role and refocus on Tesla after the company reported a staggering 71% drop in quarterly profits, amid growing investor concern, consumer backlash, and intensifying competition in the global EV market.

In a sudden and revealing move, Elon Musk has announced a significant step back from his controversial political role as “First Buddy” and head of the Department of Government Efficiency (DOGE), pledging instead to refocus on Tesla after the electric vehicle giant reported a stunning 71% drop in first-quarter profits.

The announcement came during a tense earnings call where investors demanded reassurance that the once-revered tech visionary hadn’t lost sight of what made his company a powerhouse in the first place: innovation, engineering, and relentless focus on the future of transportation.

Tesla, which once symbolized the cutting edge of electric mobility and environmental consciousness, reported a jaw-dropping profit drop—from $1.4 billion last year to just $409 million this quarter. Revenues sank as consumer enthusiasm cooled, vehicles piled up unsold, and competition mounted.

Wall Street had expected better, and the blow was compounded by a nearly 40% drop in stock value since January. Though the market showed a small rebound following the earnings release, investor confidence is on edge.

Much of the market anxiety has centered around Musk’s growing involvement in politics. His role as DOGE’s figurehead—an administrative experiment aimed at cutting waste and bureaucracy in Washington—paired with his increasing visibility alongside Donald Trump, has rattled shareholders and alienated many of the consumers who once passionately supported his brand.

Musk’s shift to the right, including public donations to Trump’s campaign and endorsements of hard-right candidates across Europe, has cost him a segment of Tesla’s core base: the environmentally focused, tech-savvy, left-leaning demographic that once wore his cars like badges of future-forward identity.

Tesla’s political entanglements haven’t gone unnoticed in the streets, either. Demonstrations under the banner “Tesla Takedown” have erupted outside dealerships across the country.

Protesters, once fans, now call for boycotts, citing Musk’s political affiliations as a betrayal of the company’s values. The group claims credit for Tesla’s slumping sales and sees the latest earnings report as validation of their pressure campaign.

Musk didn’t dodge the criticism. During the earnings call, when pressed by a concerned investor about his political distractions, Musk conceded that his time allocation would shift starting in May.

“Starting probably next month,” he said, “my time allocation to DOGE will drop significantly.” While he plans to still dedicate one or two days a week to the federal agency, his primary focus, he emphasized, will return to Tesla. “I’ll be allocating far more of my time to Tesla,” he promised.

Yet this recalibration may come too late. Global competitors, especially from China, are rapidly catching up—and in some cases, surpassing Tesla.

Brands like BYD, XPeng, NIO, and Zeekr have debuted electric vehicles that boast faster charging, longer ranges, and superior interior technology. BYD recently launched a model that charges in one-third the time it takes a Tesla.

Meanwhile, American rivals are stepping up too. Rivian’s vehicles outperform Tesla in driving range, and legacy automakers like GM and Ford have found ways to offer more value for less, including GM’s $35,000 Equinox EV.

Tesla’s once-futuristic fleet, led by the Model Y and Model 3, has grown long in the tooth. While both recently received design updates, the innovation curve is slowing. The Cybertruck, launched in late 2023 to a wave of excitement and skepticism, has become the best-selling electric pickup in the U.S., but questions about its long-term reliability and scalability remain.

Musk himself admitted that politics may have taken a toll on demand. “Changing political sentiment could have a meaningful impact on demand for our products,” he said, acknowledging that his alignment with divisive political figures may be eroding Tesla’s mass appeal. Once a symbol of a green, progressive future, Tesla now faces a perception crisis.

Despite the turbulence, Tesla is still the top-selling EV brand in the U.S. and remains the most valuable carmaker in the world by market cap. And Musk isn’t giving up on the big vision. The company is investing heavily in autonomous vehicles and robotics, technologies he believes will revolutionize not just transportation but human labor itself.

The long-promised $25,000 electric vehicle is still, at least officially, in development. Musk now says it’s on track to enter production in the first half of 2025—though with fewer cost reductions than initially hoped due to global supply chain issues.

Some analysts remain cautiously optimistic, arguing that Musk’s genius is best applied when laser-focused on solving technological problems rather than engaging in politics. But others are concerned the damage has already been done. The Musk brand, once untouchably futuristic, is becoming increasingly polarizing.

In the end, Musk’s announcement may be less about stepping back from politics and more about stepping into a fight to reclaim Tesla’s fading luster. Whether this pivot will be enough to reignite the brand’s former momentum remains uncertain. But one thing is clear: the era of Tesla dominating the EV conversation uncontested is over—and the battle for its future is just beginning.