Tesla CEO Elon Musk addressed pressing concerns about tariffs during the company’s earnings call on April 22, 2025, amid significant financial challenges. The discussion came as Tesla reported a 20% decline in car sales revenue and a 71% drop in net income compared to the previous year.

During the call, Musk emphasised that while he advocates for lower tariffs, ultimate authority rests with President Donald Trump. Tesla’s operating income decreased by 66%, reflecting the challenging landscape facing the electric vehicle manufacturer in the current economic climate.

“I’ve been on the record many times saying that I believe lower tariffs are generally a good idea for prosperity, but this decision is fundamentally up to the elected representative of the people being the president of the United States,” Musk stated during the earnings call. He highlighted Tesla’s resilience, noting that the company remains “the least affected car company with respect to tariffs, at least in most respects.

The CEO announced plans to increase his focus on Tesla starting next month, stepping back from his role in the government advisory group DOGE, where he worked on reducing federal waste and fraud. Musk acknowledged that his governmental involvement had resulted in “some blowback” that may have affected Tesla’s performance.

Industry analysts warn that evolving trade policies continue to pose challenges for both the automotive and energy sectors. Tesla’s financial filings indicate that tariffs could particularly impact its Tesla Energy division more significantly than its automotive operations, reflecting broader industry concerns about rising costs and supply chain disruptions.

Despite being critical of tariffs, Musk maintains a supportive relationship with President Trump while navigating complex political and economic pressures. This positions Tesla uniquely within the U.S. market as the company faces both policy challenges and internal transitions.

The combination of external policy pressures and leadership changes has notably influenced Tesla’s business outcomes. As Musk consolidates his focus on Tesla’s operations, the company faces the dual challenge of managing tariff impacts while working to stabilise its revenue and delivery numbers.

Tesla’s future trajectory will largely depend on how effectively it can navigate the evolving tariff landscape while implementing Musk’s renewed leadership focus. The company’s ability to maintain its resilient supply chains while adapting to potential policy changes will be crucial for its recovery and growth in coming quarters.

Source: CNBC