Elon Musk Shifts Focus Away from Dogecoin as Tesla Faces Major Profit Drop

Elon Musk has just announced that he’s pulling back from his involvement with Dogecoin (DOGE), right as Tesla’s profits take a massive hit. After Tesla reported a 71% drop in profits for Q1 2025, Musk said the backlash surrounding his political views and his role in DOGE was playing a part in the company’s struggles.

Starting in May, Elon Musk plans to focus less on Dogecoin and more on getting Tesla back on track. He’s admitted that his involvement with the cryptocurrency, which has been a big part of his public image, might be distracting him from Tesla’s main goals. “I need to put more energy into Tesla,” he stated during a recent earnings call.

Though he’s scaling back, he hasn’t fully ruled out his connection with DOGE. He said he would likely remain involved until the end of President Donald Trump’s current term, but for now, it seems like he’s shifting gears, prioritizing Tesla’s core business instead.

Tesla’s Profit Drop

Tesla’s Q1 2025 earnings took a big hit, with profits falling by 71%. This is the biggest drop the company has seen in years, and it’s causing some serious concern among investors. Analysts say that part of the issue stems from the controversies surrounding Elon Musk—his political views, his leadership in DOGE, and his constant media presence may have contributed to the negative sentiment around the brand.

With all the pressure mounting, he acknowledged that Tesla’s future relies more on its electric cars and energy solutions than anything else. “We have to get back to basics,” he said, signaling a shift toward refocusing on what Tesla does best: building sustainable technology.

Dogecoin’s Unexpected Jump

Surprisingly, Dogecoin actually saw a price increase after Elon Musk’s announcement. The price of DOGE surged to $0.18, likely fueled by the idea that Elon Musk’s reduced involvement could give the cryptocurrency some stability. People have long wondered if Dogecoin could survive without him constantly pushing it into the spotlight, and this price jump seems to suggest it might.

But while the coin’s value is up, it’s still unclear where Dogecoin is headed long-term. Without Elon Musk’s regular promotion, the future of DOGE remains uncertain in the ever-changing crypto market.

Tesla started accepting Dogecoin for some merchandise back in 2021, but there’s been no sign of the company planning to let customers buy cars with DOGE anytime soon. Right now, it’s just an option for branded items, and there’s no indication that Tesla is looking to expand its use of cryptocurrency for larger purchases.

While Dogecoin fans hoped that Elon Musk might eventually make it a regular payment method for Tesla cars, that doesn’t seem to be on the horizon. Whether or not Tesla will dive deeper into crypto remains to be seen, but for now, it seems like Musk is steering away from Dogecoin when it comes to the company’s core business.

What’s Next for Tesla and DOGE?

Elon Musk stepping back from Dogecoin marks a pretty big moment for both Tesla and the crypto world. While DOGE’s price increase is promising, it’s hard to say if it can keep up without his direct influence.

For Tesla, the hope is that by focusing more on electric cars and energy solutions, he can turn things around and restore confidence in the company. Tesla’s stock has shown some signs of life lately, trading at $237.97, up 4.64% from the previous close. But there’s still a lot of work ahead if Tesla wants to get back on its feet after this profit slump.