Musk says he'll spend less time in Washington and more time running Tesla after its profit plunges

NEW YORK (AP) — Elon Musk says he’ll be spending less time in Washington slashing government costs and more time running Tesla after his electric vehicle company reported a big drop in profits.

Musk said on a conference call with analysts Tuesday that “now that the major work of establishing Department of Government Efficiency is done,” that he will be “allocating far more of my time to Tesla” starting in May. Musk said he now expects to spend just “a day or two per week on government matters”

Tesla struggled to sell vehicles as it faced angry protests over Musk’s leadership of DOGE, a jobs-cutting group that has divided the country. The Austin, Texas, company reported a 71% drop in profits and a 9% decline in revenue for the first quarter.

“Investors wanted to see him recommit to Tesla,” said Wedbush Securities' Dan Ives. “This is a big step in the right direction."

Investors sent Tesla shares up more than 5% in after-hours trading, although they are still down more than 40% for the year.

The company reconfirmed that it expects to roll out a cheaper version of its best-selling vehicle, the Model Y sport utility vehicle, in the first half of this year. It also stuck with its predictions that it will be able to launch a paid driverless robotaxi service in Austin in June and have much of its fleet operating by itself next year.

“There will be millions of Teslas operating autonomously in the second half of the year,” Musk said in a conference call after the results were announced. He later added about the personal use of autonomous vehicles, "Can you go to sleep in our cars and wake up at your destination? I’m confident that will be available in many cities in the U.S. by the end of this year.”

Auto analyst Sam Abuelsamid at Telemetry Insight said he doubts Musk's predictions.

“The system is not robust enough to operate unsupervised. It still makes far too many errors,” he said. “It will suddenly make mistakes that will lead to a crash.”

The planned rollout of the robotaxi without a steering wheel or pedals comes as federal regulators still have open investigations into whether the technology that Tesla hopes will allow cars to drive themselves is completely safe.

Tesla’s driver-assistance technology that can steer or stop a car but still requires humans to take over at any time — its so-called Autopilot — is being probed by the National Highway Traffic Safety Administration for whether it alerts drivers sufficiently when their attention wanders. And the company’s Full Self-Driving, which is only partial self-driving and has drawn criticism for misleading drivers with the name, has come under scrutiny for its tie to accidents in low-visibility conditions like when there is sun glare.

Another challenge to Tesla, which once dominated the EV business: It is facing fierce competition for the first time.

Earlier this year, Chinese EV maker BYD announced it had developed an electric battery that can charge within minutes. And Tesla’s European rivals have begun offering new models with advanced technology that is making them real Tesla alternatives just as popular opinion has turned against Musk. The Tesla CEO has alienated potential buyers in Europe by publicly supporting far-right politicians there.

Tesla said Tuesday that quarterly profits fell from $1.39 billion to $409 million, or 12 cents a share. That’s far below analyst estimates. Tesla’s revenue fell from $21.3 billion to $19.3 billion in the January through March period, also below Wall Street’s forecast. Tesla’s gross margins, a measure of earnings for each dollar of revenue, fell from 17.4% to 16.3% .

Tesla has said it will be hurt less by the Trump administration's tariffs than most U.S. car companies because it makes most of its U.S. cars domestically. But it won’t be completely unscathed. It sources some materials for its vehicles from abroad that will now face import taxes.

Tesla warned in announcing its results that tariffs will hit its energy storage business, too.

Retaliation from China will also hurt Tesla. The company was forced earlier this month to stop taking orders from mainland customers for two models, its Model S and Model X. It makes the Model Y and Model 3 for the Chinese market at its factory in Shanghai.

The company’s side business of selling “regulatory credits” to other automakers that fall short of emission standards boosted results for the quarter.

Tesla generated $595 million from credit sales, up from $442 million a year ago.

The company generated $2.2 billion in cash flow versus $242 million a year earlier.

Morningstar analyst Seth Goldstein said earlier reports of plunging sales that had tanked the stock made the quarterly results almost predictable.

“They’re not particularly surprising given that deliveries were down,” he said. “It was good to see positive cash flow.”

People pass by a Tesla sign at the Manila International Auto Show in Pasay city, Philippines Friday, April 11, 2025. (AP Photo/Aaron Favila)

Demonstrators protest against Elon Musk and Department of Government Efficiency cuts outside a Tesla dealership, Saturday, April 12, 2025, in Kansas City, Mo. (AP Photo/Charlie Riedel)

Elon Musk and his son X Æ A-Xii walk on the South Lawn upon their arrival to the White House in Washington, Sunday, April 13, 2025. (AP Photo/Jose Luis Magana)

Elon Musk, left, carries his son, X Æ A-Xii, down the stairs of Air Force One upon President Donald Trump's arrival at Joint Base Andrews, Md., Sunday, April 13, 2025. (AP Photo/Luis M. Alvarez)

FILE - Elon Musk flashes his T-shirt that reads "DOGE" to the media as he walks on South Lawn of the White House, in Washington, March 9, 2025. (AP Photo/Jose Luis Magana, File)

FILE - Tesla and SpaceX CEO Elon Musk walks to the stage to speak at the Butler Farm Show, Oct. 5, 2024, in Butler, Pa. (AP Photo/Alex Brandon, file)

FILE - Tesla vehicles line a parking lot at the company's Fremont, Calif., factory on Sept. 18, 2023. (AP Photo/Noah Berger, file)

GLENDALE, Ariz. (AP) — Bijan Robinson had another outstanding game running the ball and catching it, talented tight end Kyle Pitts caught a touchdown pass, and the Atlanta defense made a big play in a critical moment.

This was what the Falcons were supposed to look like this season.

The good times have come too late for the Falcons to make a run at the postseason, but Sunday's 26-19 victory over the Arizona Cardinals was a reminder that this is a roster with the potential to produce positive results.

“It shows guys what this team should look like on a consistent basis, every time we're out there,” coach Raheem Morris said.

The Falcons (6-9) won for the second straight week, with both coming on the road. They've won three of their last five, bouncing back after a five-game skid that derailed their season.

Atlanta controlled much of the second half, building a 26-16 lead by early in the fourth quarter, but Arizona rallied and made a fourth-down defensive stop at its own 40-yard line with 2:05 left. That gave the Cardinals a chance to tie the game or take the lead.

Atlanta's C.J. Henderson — who was elevated from the practice squad on Saturday — made a diving interception of Jacoby Brissett's pass with 1:30 remaining to secure the win.

“I've been staying ready the entire time, so I wasn't surprised,” Henderson said.

Robinson had 92 yards receiving on seven catches, including a 13-yard touchdown, and added 76 yards rushing on 16 carries. The 23-year-old became the third player in franchise history to gain at least 2,000 yards from scrimmage in a season, joining Jamal Anderson (1998) and William Andrews (1981 and 1983).

“That's a real-deal stat — doing 2,000 from scrimmage,” Falcons quarterback Kirk Cousins said. “It's hard to do if you're not healthy, so the fact that he's durable enough to do it is a big deal.”

Arizona (3-12) has lost seven straight and 12 of 13 since starting the season 2-0.

The Falcons pushed ahead 26-16 early in the fourth quarter when Cousins scored on a 1-yard run, which capped a 12-play, 66-yard drive. Arizona cut the deficit to 26-19 with 4:37 left on Chad Ryland's 34-yard field goal, taking advantage of Cousins' fumble at midfield.

“I loved the resilience,” Cardinals coach Jonathan Gannon said. “I thought we battled in there, but ultimately fell a little short. I thought a key component of the game is that we moved it, but had to settle for some field goals. They converted some touchdowns.”

Brissett completed 16 of 31 passes for 203 yards with a touchdown and an interception. The veteran has a 1-9 record as the Cardinals' starter since taking over for the injured Kyler Murray in Week 6.

Arizona tight end Elijah Higgins had 91 yards receiving on seven catches.

Atlanta rallied from an early 10-point deficit to tie the game at 16-all heading into halftime. Cousins hit Pitts for an 11-yard touchdown with 25 seconds left in the second quarter. Calais Campbell, Arizona's 39-year-old defensive end, blocked the extra-point attempt to keep the Falcons from taking the lead.

Arizona tried a 50-yard field goal to take the lead just before the break, but Ryland's kick was no good, bouncing off the right upright.

Ryland also missed a 44-yard attempt in the third quarter wide right.

The Cardinals took a 10-0 lead midway through the first quarter after Michael Wilson made a circus catch for a 32-yard touchdown. Falcons cornerback Cobee Bryant and Wilson tumbled into the end zone as they fought for possession and the ball bounced between them, eventually settling between Wilson's legs without hitting the ground.

Cardinals tight end Trey McBride caught four passes for 27 yards, which snapped a personal streak of 16 straight games with at least five receptions. The 16-game streak was an NFL record for a tight end.

Cardinals: CB Max Melton (heel), LT Paris Johnson Jr. (knee) and S Jalen Thompson (hamstring) were among six inactives. ... CB Garrett Williams (Achilles tendon) left in the first quarter and had to be carted off the field after the non-contact injury. ... Rookie DL Walter Nolen III (knee) was carted off in the third quarter. ... DL Josh Sweat (ankle) was hurt during the first quarter and initially returned, but was ruled out in the third quarter.

Falcons: Host the Los Angeles Rams on Monday, Dec. 29.

Cardinals: At Cincinnati next Sunday.

AP NFL: https://apnews.com/hub/nfl

Arizona Cardinals wide receiver Michael Wilson (14) scores a touchdown against Atlanta Falcons cornerback Cobee Bryant (37) during the first half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Rick Scuteri)

Atlanta Falcons linebacker Kaden Elliss (55) blocks a pass against Arizona Cardinals tight end Trey McBride (85) during the second half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Rick Scuteri)

Atlanta Falcons running back Tyler Allgeier (25) runs against the Arizona Cardinals during the first half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Rick Scuteri)

Atlanta Falcons quarterback Kirk Cousins (18) passes against the Arizona Cardinals during the first half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Ross D. Franklin)

Atlanta Falcons linebacker Arnold Ebiketie (17) sacks Arizona Cardinals quarterback Jacoby Brissett (7) during the first half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Rick Scuteri)

Atlanta Falcons tight end Kyle Pitts Sr. (8) makes the catch against Arizona Cardinals linebacker Akeem Davis-Gaither (27) during the first half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Ross D. Franklin)

Atlanta Falcons running back Bijan Robinson (7) scores a touchdown against the Arizona Cardinals during the first half of an NFL football game, Sunday, Dec. 21, 2025, in Glendale, Ariz. (AP Photo/Rick Scuteri)