Elon Musk Recommits to Tesla Amid Profit Drop and Political Backlash

Elon Musk plans to focus more on Tesla following a 71% drop in the company's profit for the first quarter. As the firm battles political backlash and rising competition, Musk's leadership is under scrutiny. Despite setbacks, Tesla is steering towards new initiatives, including an affordable Model Y.

Elon Musk has announced a renewed commitment to Tesla, pledging to dedicate more time to the company starting in May. This decision follows a disappointing first-quarter earnings report, which revealed a steep 71% decline in profits.

Based in Austin, Texas, Tesla reported profits falling to USD 409 million or 12 cents a share, missing analysts' expectations. This comes amid unrest over Musk's political affiliations and his role with a government jobs-cutting group.

Despite Tesla's stock falling 40% this year, it saw a slight rebound in after-hours trading. Investors now await updates on strategic initiatives, notably a more affordable Model Y SUV and a paid driverless taxi service in Texas.

(With inputs from agencies.)