Trump says he is suing Perkins Coie law firm after it filed suit against executive order – live | Trump administration
Trump says he is suing Perkins Coie after law firm filed suit against punitive executive order
Donald Trump said he was suing Perkins Coie law firm for “egregious and unlawful acts” and cited the conduct of an unidentified member of the firm.
Trump did not elaborate in his Truth Social post. Trump issued an executive order last month that calls to terminate federal contracts held by Perkins Coie’s clients if the firm performed any work on them. Perkins Coie sued the Trump administration in response, arguing the president’s order violated constitutional protections.
In his post, Trump wrote:
I’m suing the law firm of Perkins Coie for their egregious and unlawful acts, in particular the conduct of a specific member of this firm, only to find out that the Judge assigned to this case is Beryl Howell, an Obama appointment, and a highly biased and unfair disaster. She ruled against me in the past, in a shocking display of sick judicial temperament, on a case that ended up working out very well for me, on appeal. Her ruling was so pathologically bad that it became the “talk of the town.” I could have a 100% perfect case and she would angrily rule against me. It’s called Trump Derangement Syndrome, and she’s got a bad case of it. To put it nicely, Beryl Howell is an unmitigated train wreck. NO JUSTICE!!!
Key events
US treasury secretary Scott Bessent on Wednesday called on the International Monetary Fund and World Bank to refocus on their core missions of macroeconomic stability and development, claiming they have strayed too far into vanity projects such as climate change that have reduced their effectiveness.
Reuters reports that Bessent, in remarks outlining his vision for US engagement with the IMF and World Bank on the sidelines of the institutions’ spring meetings, said that they serve critical roles in the international financial system.
“And the Trump administration is eager to work with them, so long as they can stay true to their missions,” Bessent said in prepared remarks to the Institute of International Finance.
“The IMF and World Bank have enduring value. But mission creep has knocked these institutions off course. We must enact key reforms to ensure the Bretton Woods institutions are serving their stakeholders - not the other way around,” he said, calling on US allies to join the effort. He added:
America First does not mean America alone.
Trump’s announcement that he’s suing Perkins Coie comes after the law firm successfully sued his administration for punitive executive orders which stripped security clearances from the firm’s lawyers, mandated the termination of any contracts and barred federal government employees from engaging with its attorneys or allowing them access to government buildings.
Trump has punished several law firms with executive orders because of their connection to adversaries or involvement in causes against him. The orders threaten to cripple the firms by essentially making it impossible for them to do business with any client that has business before the government.
Per NPR, Trump’s executive order accused Perkins Coie of a range of nefarious actions over the years allegedly seeking to undermine democratic elections as well as the integrity of US courts and law enforcement.
The order specifically mentioned the firm’s representation of Hillary Clinton’s 2016 campaign, and the role attorneys at Perkins Coie played in the creation of a dossier of unsubstantiated allegations about possible Trump-Russia ties.
While five other law firms sought to cut deals with the Trump administration to avoid being similarly targeted, Perkins Coie and two others sued the administration, its lawsuit pushing back against any allegation of wrongdoing. It noted that Trump filed a lawsuit in 2022 against Perkins Coie, Clinton and others alleging a conspiracy against him. The case was dismissed months later by a federal court.
A federal judge on 12 March temporarily blocked most of the executive order Trump issued against Perkins Coie, finding it probably violated the US constitution. The judge ruled that the president used national security concerns as a pretext to punish the firm Perkins Coie for once working with Hillary Clinton.
And in 4 April more than 500 legal firms moved to file an amicus brief signed a brief in support of Perkins Coie’s fight back against Trump’s punitive actions.
The firm and others named in the executive orders earlier are each representing clients in lawsuits against the Trump administration over issues such as immigration, transgender rights and firings of government workers.
Trump says he is suing Perkins Coie after law firm filed suit against punitive executive order
Donald Trump said he was suing Perkins Coie law firm for “egregious and unlawful acts” and cited the conduct of an unidentified member of the firm.
Trump did not elaborate in his Truth Social post. Trump issued an executive order last month that calls to terminate federal contracts held by Perkins Coie’s clients if the firm performed any work on them. Perkins Coie sued the Trump administration in response, arguing the president’s order violated constitutional protections.
In his post, Trump wrote:
I’m suing the law firm of Perkins Coie for their egregious and unlawful acts, in particular the conduct of a specific member of this firm, only to find out that the Judge assigned to this case is Beryl Howell, an Obama appointment, and a highly biased and unfair disaster. She ruled against me in the past, in a shocking display of sick judicial temperament, on a case that ended up working out very well for me, on appeal. Her ruling was so pathologically bad that it became the “talk of the town.” I could have a 100% perfect case and she would angrily rule against me. It’s called Trump Derangement Syndrome, and she’s got a bad case of it. To put it nicely, Beryl Howell is an unmitigated train wreck. NO JUSTICE!!!
Sam Levine
Analysis: A battle looms over rule of law as some courts start to flex their muscles against Trump
The US supreme court and other federal courts have begun flexing their muscles to push back on Donald Trump’s efforts to defy judicial orders, escalating a hugely consequential battle over the rule of law.
The supreme court issued a significant order early Saturday morning blocking the federal government from removing people who had been detained in northern Texas from the US. Separately, US district judge James Boasberg has found probable cause to hold the government in contempt for defying his orders to halt deportations.
In another case, the US district judge Paula Xinis has forced the government to provide daily updates in its efforts to comply with court orders to “facilitate” the return of Kilmar Ábrego García – the man who was wrongly deported to El Salvador.
It is a dynamic that underscores how a constitutional crisis between Trump and the courts is likely to be a push and pull between the government and judges that is simmering through the legal system and could very well break it.
US senator Peter Welch of Vermont, a Democrat, met with Mohsen Mahdawi on Monday at the prison and posted a video account of their conversation on X. Mahdawi said he was “in good hands”. He said his work is centered on peacemaking and that his empathy extends beyond the Palestinian people to Jews and to the Israelis.
“I’m staying positive by reassuring myself in the ability of justice and the deep belief of democracy,” Mahdawi said in Welch’s video. “This is the reason I wanted to become a citizen of this country, because I believe in the principles of this country.”
I just met with Mohsen Mahdawi where he’s being held in Vermont.
He was detained when he showed up for his citizenship interview.
Federal judge in Vermont to consider request for immediate release of detained Palestinian student Mohsen Mahdawi
A federal judge is scheduled to consider a request on Wednesday to immediately release a Palestinian man who led protests against Israel’s war on Gaza as a student at Columbia University and was arrested during an interview about finalizing his US citizenship.
Mohsen Mahdawi, a legal permanent resident for 10 years, was arrested on 14 April at the US Citizenship and Immigration Services office in Colchester, Vermont, by Immigration and Customs Enforcement (Ice) agents, his lawyers said. He is being detained at the Northwest state correctional facility in St Albans.
Mahdawi’s lawyers say he was detained in retaliation for his speech advocating for Palestinian human rights. “We ask this court to suspend this unlawful retaliation and slow the grave threat to free speech posed by his continued detainment by releasing Mr. Mahdawi on bail,” they ask in a court document filed on Tuesday.
The government also filed a response on Tuesday. US district court filings in Mahdawi’s case, with the exception of judicial orders, are not publicly available online. A representative of Mahdawi and a justice department lawyer did not immediately respond to an emailed Associated Press request for the document on Wednesday morning.
Mahdawi had attended his interview, answered questions and signed a document that he was willing to defend the US constitution and laws of the nation. “It was a trap,” his lawyers said. They said masked Ice agents entered the interview room, shackled Mahdawi and put him in a car. A judge later issued an order barring the government from removing him from the state or country.
Mahdawi is still scheduled for a hearing date in immigration court in Louisiana on 1 May, his attorneys said. His notice to appear says he is removable under the Immigration and Nationality Act because the secretary of state has determined his presence and activities “would have serious adverse foreign policy consequences and would compromise a compelling US foreign policy interest”.
Last month, secretary of state Marco Rubio said the state department was revoking visas held by visitors who were acting counter to national interests, including some who protested Israel’s war on Gaza and those who face criminal charges.
According to the court filing, Mahdawi was born in a refugee camp in the West Bank and moved to the US in 2014. He recently completed coursework at Columbia and was expected to graduate in May before beginning a master’s degree program there in the fall.
As a student, Mahdawi was an outspoken critic of Israel’s military campaign in Gaza and organized campus protests until March 2024.
Fears grow that Signal leaks make Pete Hegseth top espionage target
Ben Makuch
As more develops about the US defense secretary, Pete Hegseth, and his repeated disclosures of sensitive military intelligence in unsecured Signal group chats, there are growing concerns his behavior has weakened the Pentagon in the eyes of its foreign adversaries and made him and his entourage a top espionage target.
Pete Hegseth texted highly sensitive information on active strikes in Yemen in Signal group chats. Photograph: Ken Cedeno/Reuters
Allies, already concerned by Donald Trump’s aggressive tariffs, have also begun to see the US as an intelligence-sharing liability. There are fears that the increasing firings and leak inquiries in Hegseth’s orbit, along with his inability to manage these internal crises, exposes the entire global US war footing – especially, if a geopolitical and external crisis comes across his desk.
“[What if] a foreign entity, whether it be a state actor or non-state actor, is able to intercept the movements of troops or department personnel, or something like that, capture them and hold them to ransom,” said Kristofer Goldsmith, an Iraq war veteran and CEO at Task Force Butler. “That kind of thing could very easily happen.”
Former officials serving in national security positions under Joe Biden’s administration also told the Guardian on background that the situation is perilous and that Hegseth has endangered the secrets of the defense department and the White House. One person said Russian and Chinese spies were no doubt directly targeting susceptible people in Hegseth’s inner circle.
Goldsmith, a threat intelligence expert, said there were many scenarios wherein a foreign government could gain access to those chats, without the need to directly compromise Hegseth’s devices.
“Pete Hegseth is texting his wife and his wife is posting on Instagram, clicks a link, and gets malware on her phone,” said Goldsmith, describing a hypothetical scenario. “Then the Chinese or the Iranians or the Russians just happen to be like, ‘Oh, shit, we’ve got Mrs Hegseth, [without] even targeting her.’”
To Goldsmith, Hegseth, who came into power on the heels of publicly characterizing the Pentagon as a “woke” shambles after years of ignoring “war fighters”, has already undermined the overall power of the US military in his months-long reign.
These kinds of leaks, anticipating troop movements, anticipating attacks – those can put our adversaries in position to intercept pilots or convoys or ships, which could create an international incident. It could mean a nuclear or a biological or a chemical crisis of some kind.
My colleagues Dan SabbaghandPjotr Sauer have more on Marco Rubio’s abrupt cancelation of his trip to London to discuss ending Russia’s war in Ukraine and the subsequent downgrading of the talks.
Ministerial-level Ukraine peace talks that were due to take place in London on Wednesday have been postponed at the last minute amid speculation that Russia is willing to change its position and after the US secretary of state, Marco Rubio, said he could not attend.
The UK Foreign Office indicated that ministerial-level meetings would be replaced by discussions at an official level – though initial public comments from the Kremlin suggested Moscow still opposed Nato countries sending peacekeepers to Ukraine.
The late downgrade came after reports apparently from Russia and the US suggesting the two countries had made progress in separate bilateral peace discussions between the White House and Kremlin.
Leaks to the Financial Times and other media indicate that Russia is willing to abandon its territorial claims to three Ukrainian regions it only partly occupies after three years of fighting in return for the US formally recognising the annexation of Crimea as part of a ceasefire agreement.
At present neither Russia nor the US has gone on the record to confirm the reports, though on Monday the US president, Donald Trump, said he would be providing “full detail” on the peace proposals “over the next three days”.
But a source familiar with Moscow’s thinking confirmed to the Guardian that Vladimir Putin had offered to freeze the conflict in Ukraine along the current frontlines during recent talks with SteveWitkoff, Trump’s Middle East envoy.
However, the source cautioned that it remained unclear what other demands Putin might present – and cautioned that the apparent concession could be a tactic to draw Trump into accepting broader Russian terms.
Talks between the US, Ukraine and European officials to discuss ending Russia’s war in Ukraine faltered on Wednesday as US secretary of state Marco Rubio abruptly cancelled his trip to London and negotiations were downgraded, reports Reuters.
Rubio’s no show prompted a broader meeting of foreign ministers from Ukraine, the UK, France and Germany to be cancelled, although talks continued at a lower level. The US would now be represented by Ukraine envoy GenKeith Kellogg.
The downgrading of the talks comes at a critical time, just days after president Donald Trump warned that Washington could walk away if there was no progress on a deal soon. Trump raised the pressure on Sunday when he said he hoped Moscow and Kyiv would make a deal this week to end the three-year war.
According to Reuters, a source close to the discussions said the downgrading of the trip came after Ukraine drafted a paper for the Europeans on Tuesday, in which it said there would be no discussions on territorial issues until “a full and unconditional ceasefire”.
The source told Reuters that the apparent US nervousness could indicate that the Ukrainian position did not align with what Washington’s representatives had agreed so far with the Russians.
Rubio spoke to the UK foreign secretary, David Lammy, late on Tuesday and said he looked forward to rescheduling his trip in the coming months after Wednesday’s “technical meetings”.
Speaking on his arrival in London with the foreign and defense ministers, Ukrainian presidential adviser Andriy Yermak said the talks would focus on ways to achieve a full and unconditional ceasefire as a first step to peace. “Despite everything, we will work for peace,” he said on social media.
The meeting is a follow-up to a similar session in Paris last week where US, Ukrainian and European officials discussed ways to move forward and narrow positions. During those talks, Trump’s special envoy Steve Witkoff presented a paper to the participants outlining proposals in which Ukraine in particular, but also Russia, would need to make concessions, according to three diplomats aware of the talks, Reuters reports.
Nato's Rutte to meet Rubio, Hegseth and Waltz in Washington this week
Nato secretary general Mark Rutte will visit the US and meet the secretary of state, Marco Rubio, the defense secretary, Pete Hegseth, and the national security adviser, Mike Waltz, according to a media notice shared by the military alliance’s press office.
Rutte will visit the US on 24 and 25 April.
Léonie Chao-Fong
The veterans affairs department (VA) is ordering staff to report colleagues for instances of “anti-Christian bias” to a newly established taskforce, as part of Donald Trump’s push to reshape government policy on religious expression.
The VA secretary, Doug Collins, in an internal email seen by the Guardian, said the department had launched a taskforce to review the JoeBiden administration’s “treatment of Christians”.
“The VA taskforce now requests all VA employees to submit any instance of anti-Christian discrimination to Anti-ChristianBiasReporting.@va.gov,” the email reads. “Submissions should include sufficient identifiers such as names, dates, and locations.”
The email states that the department will review “all instances of anti-Christian bias” but that it is specifically seeking instances including “any informal policies, procedures, or unofficially understandings hostile to Christian views”.
In addition, the department is seeking “any adverse responses to requests for religious exemptions under the previous vaccine mandates” and “any retaliatory actions taken or threatened in response to abstaining from certain procedures or treatments (for example: abortion or hormone therapy)”.
Donald Trump signed an executive order within weeks of his second term aimed at ending the “anti-Christian weaponization of government”, and announced the formation of a taskforce, led by the attorney general, Pam Bondi, to end all forms of “anti-Christian targeting and discrimination” in the government.
‘National disgrace’: US lawmakers decry student detentions on visit to Ice jails
Dani Anguiano
Congressional lawmakers denounced the treatment of Mahmoud Khalil and Rümeysa Öztürk, the students being detained by US immigration authorities for their pro-Palestinian activism, as a “national disgrace” during a visit to the two facilities in Louisiana where each are being held.
“We stand firm with them in support of free speech,” the Louisiana congressman Troy Carter, who led the delegation, said during a press conference after the visits on Tuesday. “They are frightened, they’re concerned, they want to go home.”
Öztürk, a Tufts University PhD student, and Khalil, a graduate of Columbia, have been detained for more than a month since US immigration authorities took them into custody. Neither have been accused of criminal conduct and are being held in violation of their constitutional rights, members of the delegation said.
A rally in support of Rümeysa Öztürk in March. Photograph: Faith Ninivaggi/Reuters
The delegation included representatives Carter, Bennie Thompson, Ayanna Pressley, Jim McGovern, Senator Ed Markey, and Alanah Odoms, the executive director of the ACLU of Louisiana. They visited the South Louisiana Ice processing center in Basile, where Öztürk is being held, and traveled to the central Louisiana Ice processing center in Jena to see Khalil.
They met with Öztürk and Khalil and others in Ice custody to conduct “real-time oversight” of a “rogue and lawless” administration, Pressley said.
Their detention comes as the Trump administration has staged an extraordinary crackdown on immigrants, illegally removing people from the country and seeking to detain and deport people for constitutionally protected free speech that it considers adverse to US foreign policy.
“It’s a national disgrace what is taking place,” Markey said. He added:
We stand right now at a turning point in American history. The constitution is being eroded by the Trump administration. We saw today here in these detention centers in Louisiana examples of how far [it] is willing to go.
McGovern described those being held as political prisoners. He said:
This is not about enforcing the law. This is moving us toward an authoritarian state.
US stock index futures leapt on Wednesday, after president Donald Trump backed off from his threats to fire the head of the Federal Reserve and raised hopes for a trade deal with China.
Shares of Tesla, meanwhile, rose 6.3% in premarket trading as the company kicked off magnificent seven – the group of technology stocks that has played a dominant role in the US stock market – earnings on a positive note.
According to Reuters, Tesla reported a profit for its core auto business that topped rock-bottom expectations.
Trump said on Tuesday he had “no intention” of firing Fed chair Jerome Powell, walking back from his comments that Powell’s termination could not come “fast enough” after heavy criticism in the past few days.
Hopes for trade negotiations between the US and China, which have been locked in an escalating tit-for-tat tariff war, also helped lift sentiment after Trump expressed optimism that a trade deal with the country could “substantially” lower tariffs on Chinese goods.
Markets welcomed Trump’s change in tone, with futures jumping in extended trade on Tuesday and recovering after the attacks on Fed’s Powell had rattled investors and sparked sharp losses in US assets, including stocks and the dollar, earlier in the week.
Although Trump backtracked on his statement to fire Powell, he reiterated that he wanted the Fed to be more active in lowering interest rates, reports Reuters. Powell said last week that the central bank will be cautious in easing policy given the lack of clarity on how sweeping changes to US trade rules will impact growth and inflation.
Vance says Russia and Ukraine will need 'territorial swaps' for deal
US vice-president JD Vance said on Wednesday that Moscow and Kyiv need to agree to exchange territory if they want to reach a ceasefire in Ukraine, reports Agence France-Presse (AFP).
“It’s now time, I think, to take, if not the final step, one of the final steps, which is, at a broad level, the party saying we’re going to stop the killing, we’re going to freeze the territorial lines at some level close to where they are today,” Vance told reporters during a visit to India.
US vice-president JD Vance speaks to reporters as he departs Agra for Jaipur, on Wednesday. Photograph: Kenny Holston/AP
“Now, of course, that means the Ukrainians and the Russians are both going to have to give up some of the territory they currently own,” he added.
Marina Dunbar
The US health secretary Robert F Kennedy Jr on Tuesday called sugar “poison” and recommended that Americans eat “zero” added sugar in their food, while acknowledging that the federal government was unlikely to be able to eliminate it from products.
Kennedy, however, said that better labeling was needed for foods and that new government guidelines on nutrition would recommend people avoid sugar completely.
The health and human services secretary also announced plans to eliminate the last eight government-approved synthetic food dyes from the US food supply within two years.
Kennedy said at a press conference on Tuesday:
Sugar is poison and Americans need to know that it is poisoning us.
He added moments later:
I don’t think that we’re going to be able to eliminate sugar, but I think what we need to do, probably, is give Americans knowledge about how much sugar is in their products, and also, with the new nutrition guidelines, we’ll give them a very clear idea about how much sugar they should be using, which is zero.
The secretary said the public is under-informed about food.
Americans don’t know what they’re eating. We’re going to start informing Americans about what they’re eating.
Meanwhile, he did not talk about vaccines or vaccinations at the press conference, but it was reported by Politico, citing sources familiar with departmental discussions, that Kennedy, a vaccine skeptic, was considering removing the Covid-19 shot from the official federal list of recommended inoculations for children.
Steve Hilton, former David Cameron adviser, to run for California governor
David Cameron’s former top adviser Steve Hilton has joined the 2026 race for California governor, running as a Republican to replace the Democrats’ Gavin Newsom, who is prevented by law from seeking a third term.
Hilton, who hosted a show on Fox News for six years, launched his campaign with the theme “Golden Again: Great Jobs, Great Homes, Great Kids”. His campaign said Hilton would be “reinforcing his commitment to positive, practical solutions instead of today’s ideology and dogma”, and that his brand of “positive populism” would focus on helping working families.
Author and former Fox News host Steve Hilton announced his run for California governor during an event in Huntington Beach, California, on Tuesday. Photograph: Paul Bersebach/AP
Hilton was one of the then UK prime minister’s closest advisers before the pair fell out over immigration and Brexit in 2016. Hilton, a former advertising executive, is thought to have been largely responsible for a host of early Cameron measures and photo opportunities including the husky expedition to Alaska to popularise his “Vote Blue, Go Green” message.
At his campaign launch in Los Angeles, Hilton took aim at state Democrats over notoriously high state taxes, soaring home prices and “the destruction of the California dream.”
He said he would welcome running against the former vice-president Kamala Harris, a one-time California senator and attorney general who has not ruled out a run for the governorship.
Johana Bhuiyan
Analysts attribute Tesla’s overall difficulties to a number of factors, but ultimately conclude Musk’s role in the White House has caused a branding crisis for Tesla. The company is at a major crossroads, analysts say, that will only be remedied if Musk leaves his role in Doge and returns to Tesla as CEO full-time.
In addition to a drop in sales, a 50% dip in share prices, existing Tesla owners are looking to sell their vehicles in droves, Teslas have been vandalized across the country and in response to ongoing protests of the automaker, the Vancouver International Auto show removed the electronic carmaker from its March lineup. The company also recalled 46,000 Cybertrucks – nearly all that had been sold.
Demonstrators protest against Elon Musk and the so-called “department of government efficiency” (Doge)outside a Tesla dealership in Kansas City, earlier this month. Photograph: Charlie Riedel/AP
Musk said that the drop in demand is due to the macro economic trends – not branding. “Tesla is not immune to the macro demand for cars,” Musk said. “When there is economic uncertainty, people generally want to pause on doing a major capital purchase like a car. Absent macro issues we don’t see any reduction in demand.”
Analysts are not convinced.
“If Musk leaves the White House there will be permanent brand damage … but Tesla will have its most important asset and strategic thinker back as full-time CEO to drive the vision and the long term story will not be altered,” read a Wedbush Securities analyst note. Wedbush remained bullish on the company’s chances of turning its financials around. “IF Musk chooses to stay with the Trump White House it could change the future of Tesla/brand damage will grow.”
The company declined to provide forward-looking guidance for the next quarter citing “shifting global trade policy on the automotive and energy supply chains”.
“While we are making prudent investments that will set up both our vehicle and energy businesses for growth, the rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment,” the earnings report reads. “We will revisit our 2025 guidance in our Q2 update.”
The company did warn, however, that “changing political sentiment” could meaningfully impact short-term demand for Tesla products.
Johana Bhuiyan
Though Elon Musk has acknowledged there have been “rocky moments” of late, he remained optimistic about Tesla’s future.
“The future for Tesla is better than ever,” he said. “The value of the company is delivering sustainable abundance with our affordable AI-powered robots. If you say, what’s the ideal future that you can imagine, that’s what you’d want. You’d want abundance for all in a way that’s sustainable, that’s good for the environment. Basically this is a happy future, this is the happiest future you can imagine.”
That “happy future” includes the company’s plans for fully self-driving cars, said the billionaire CEO as he laid out an ambitious timeline for when he expects the vehicles to hit US roads in some cities – “by the end of the year”. Tesla has historically struggled to meet timelines Musk has publicly set for the launch of new products, especially when it comes to self-driving.
“The acid test is, can you go to sleep in your car and wake up in your destination and I’m confident that will be available in many cities in the US by the end of this year,” he said.
This would be on top of the Robotaxi service the company plans to roll out in June. “I predict that there will be millions of Teslas operating fully autonomously in the second half of next year,” Musk said.
Despite missing Wall Street expectations on the top and bottom line, initial analyst reactions are optimistic given many had significantly lowered their expectations after the company reported a massive dip in vehicle deliveries.
“Against the backdrop of catastrophic expectations, with everything from sales to margins projected to continue the slump, the less-than-bad numbers have been received as welcome news by Tesla investors,” said Thomas Monteiro, senior analyst at Investing.com.
Monteiro continued:
In a curious turn of events, it’s as if numbers show that even at the worst moment, Elon and the team’s operation can still bring a robust $19.3bn in revenue, with total revenue partly making up for the huge drop in auto revenue.
If this is the worst it gets for Tesla, then certainly there must be some upside for the stock once tailwinds, such as the highly awaited cheaper model and the Robotaxi, finally hit the market later this year.
Tesla investors relieved after Musk says he will pull back in Doge role
The Tesla chief executive, Elon Musk, said he will start pulling back from his role at the so-called “department of government efficiency” (Doge) starting in May. Musk’s remarks came as the company reported a massive dip in both profits and revenues in the first quarter of 2025 amid backlash against his role in the White House.
Investors were relieved after Musk said he would scale back his government work and spend more time at Tesla, reported Reuters.
While the move is welcome one investor told the news agency, they added that it did not go far enough. Shawn Campbell, an adviser and investor at Camelthorn Investments who holds Tesla shares, told Reuters:
I think more attention by Musk on Tesla is a net positive for the stock, but to see a meaningful move in the stock we would need to see a headline more like ‘Musk to leave DOGE to refocus on Tesla’.
Tesla saw a 9% drop in revenue year over year in the first quarter of 2025. The company brought in $19.3bn in revenue, well below Wall Street expectations of $21.45bn. The company reported an earnings per share of 27 cents, also well under investor expectations of 43 cents in earnings per share.
Tesla profits also slid 71% to $409m compared with $1.39bn in net income the previous year.
The company suffered a 13% drop in vehicle deliveries, making it the company’s worst quarter since 2022. Tesla closed the quarter with 336,681 vehicles delivered.
“Starting probably next month, May, my time allocation to Doge will drop significantly,” Musk said on an investor call.
That said, he expects to spend one to two days a week continuing to do what he referred to as “critical work” at Doge “for as long as the president would like me to do so and as long as it is useful”.
More on this story in a moment, but first, here are some other developments:
Donald Trump has said tariffs on goods from China will be reduced “substantially” but “won’t be zero”, after US treasury secretary Scott Bessent said he expects a “de-escalation” in the trade war between the world’s two largest economies. Trump placed import taxes of 145% on China, which countered with 125% tariffs on US goods, causing volatility in the stock market and concern about slowing global economic growth.
Bessent has said that he expects a “de-escalation” in the trade war between the US and China and that the high tariffs are unsustainable. “I do say China is going to be a slog in terms of the negotiations,” Bessent said, according to a transcript obtained by the Associated Press. “Neither side thinks the status quo is sustainable.”
Trump’s tariffs have unleashed a “major negative shock” into the world economy, the International Monetary Fund has said, as it cut its forecasts for US, UK and global growth.
Trump has said he has no plans to fire the Federal Reserve chair, Jerome Powell. The president’s comment comes days after he called the central bank boss a “major loser” whose “termination cannot come fast enough”.
The secretary of state, Marco Rubio, has announced a proposed reorganisation of the US state department as part of what he called an effort to reform it amid criticism from the Trump White House over the execution of US diplomacy.
The embattled US defense secretary, Pete Hegseth, has defended his most recent use of the encrypted messaging app Signal to discuss sensitive military operations, blaming fired Pentagon officials for orchestrating leaks against the Trump administration.
The US health secretary, Robert F Kennedy Jr, on has called sugar “poison” and recommended that Americans eat “zero” added sugar in their food. He acknowledged that the federal government was unlikely to be able to eliminate it from products, but said better labeling was needed for foods and that new government guidelines on nutrition would recommend people avoid sugar completely.
Congressional lawmakers denounced the treatment of Mahmoud Khalil and Rümeysa Öztürk, the students being detained by US immigration authorities for their pro-Palestinian activism, as a “national disgrace” during a visit to the two facilities in Louisiana where each are being held.
More than 150 presidents of US colleges and universities have signed a statement denouncing the Trump administration’s “unprecedented government overreach and political interference” with higher education – the strongest sign yet that US educational institutions are forming a unified front against the government’s extraordinary attack on their independence.
