Tesla’s quarterly earnings plunged by 71 percent compared to the first quarter of 2024, the company announced Tuesday, a bruising result that comes amid widespread backlash against CEO Elon Musk and his work with the Trump administration.

The electric vehicle company reported a nine percent decline in revenue for the first three months of the year compared with a year earlier, according to a company report. Sales also slipped dramatically in the first three months of the year, falling 13 percent compared with the same period last year.

Tesla said it would hold a “live company update” Tuesday evening, at which Musk is expected to address shareholders. The company’s stock closed Tuesday at $238 a share, about 37 percent lower than at the beginning of the year.

In a letter to shareholders, Tesla said rapidly evolving trade policy and “changing political sentiment could have a meaningful impact on demand for our products in the near-term.”

Tesla was already struggling before Musk enmeshed himself in GOP politics last year. Since President Donald Trump’s inauguration he has almost entirely shifted his focus to running the U.S. DOGE Service. DOGE stands for the Department of Government Efficiency and is aggressively pursuing an initiative meant to reduce “waste, fraud and abuse” in the federal government.

A combination of increased competition from Chinese electric carmakers such as BYD, uncertainty around Trump’s tariffs and Musk’s declining popularity has pushed the company into turmoil.

Tesla owners are trading in their vehicles at an increasing rate; prices for used Teslas have sunk; and widespread protests against the brand have erupted around the world. Vandals have also targeted the company’s dealerships, charging stations and vehicles with molotov cocktails, gunshots and arson.

“The more political he gets with DOGE, the more the brand suffers — there is no debate,” Dan Ives of Wedbush Securities previously said in a note to investors. “This continues to be a moment of truth for Musk to navigate this brand tornado crisis moment.”

Musk has said in previous earnings calls that the future of Tesla is “overwhelmingly” autonomous driving, and he has doubled down on his vision of creating a fully self-driving car with no steering wheel or pedals.

Investors and shareholders have become increasingly frustrated with the CEO, as they attribute much of the company’s woes to the upheaval he has caused in the federal government. Sweeping layoffs and dramatic budget cuts mandated by DOGE have led to chaos, confusion and backlash.

Musk, along with the president, hinted that he will leave the government when his status as a special government employee expires at the end of May, though the exact timeline is unclear. DOGE’s work is expected to continue after he departs.

This story will be updated.