State considers remote work again as productivity declines

AUSTIN – The Quorum Report newsletter reports that the vast majority of state agencies report that flexible work schedules have improved productivity, reduced costs, and strengthened recruitment efforts; Gov. Abbott’s return to office order could cause more turnover, increase burnout and has already caused chaos with employees complaining hours wasted hours in Austin traffic could’ve been used instead for work

Since the COVID-19 pandemic forced workers to work remotely, many agencies have implemented telework arrangements.

According to a 2024 Legislative Budget Board study, of the 96 agencies surveyed about their remote work policies, the benefits are non-exhaustive.

29 agencies reported positive fiscal impacts, including reduced office space needs, fewer consumables and furniture needs. Only the Texas Medical Board and 10th Court of Appeals reported negative fiscal impacts, citing higher supply, phone and Internet costs.

80 agencies reported having remote work and hybrid policies were better for recruitment and retention. 46 agencies reported an increase in productivity. 40 reported no change in productivity.

Yet Gov. Greg Abbott’s return to office order could cause turnover, increase burnout and has already caused chaos with employees complaining the hours wasted hours in Austin traffic could’ve been used instead for work and returning to cramped and overcapacity spaces while they struggle to find parking.

DOGE Committee Chairman Gio Capriglione’s House Bill 5196, which was heard in the committee last week, would create a framework for agencies to restart remote work for government employee

Abortion clarification bill heads to full Texas Senate

AUSTIN – The Dallas Morning News reports A proposal to clarify Texas’ strict abortion laws and allow doctors to provide emergency abortion care — along with amendments aimed at addressing concerns that pregnant women themselves could be criminalized — passed a key legislative hurdle Tuesday. The Texas Senate Committee on State Affairs voted 11-0 to send an amended version of Senate Bill 31 to the full Senate. That bill was authored by Sen. Bryan Hughes, R-Mineola. Abortion rights advocates have raised concerns that the originally filed version of the bill could resurrect a century-old law that would criminalize women who receive abortions. They’ve called for the bill to be amended. Before sending the bill to the full Senate, the Committee on State Affairs adopted a substitute version of Senate Bill 31.

Hughes described the changes to the bill in the committee meeting. “The committee substitute reflects feedback to strengthen the bill, make sure that pregnant women — further clarify they would not be prosecuted in any way,” Hughes said. Hughes’ office sent a copy of the substitute version to The Dallas Morning News. The substitute version removes some of the references to the century-old abortion ban. The substitute also makes it clearer that doctors do not need to wait until a medical condition is “actively injuring” the pregnant woman before providing necessary abortion care. In a joint statement Tuesday evening, five abortion rights advocates and survivors of traumatic pregnancies said they had learned of the changes earlier in the day. They were taking time to review the changes to the bills, according to the statement, which was issued by reproductive rights organization Free & Just. Tuesday’s committee meeting, which lasted about six minutes according to the recording posted online, did not include any discussion of the bill.

Woman hugs the man who killed her brother and 22 more

EL PASO (AP) – Speaking to the gunman who killed her brother and 22 other people, Yolanda Tinajero did not raise her voice or condemn him for his racist attack at a Walmart in 2019. Instead she told him Tuesday that she forgave him, and wished she could give him a hug.

The judge, in a surprising turn in an El Paso courtroom, allowed her to do just that.

Their brief embrace — while Patrick Crusius was still shackled — was among many emotionally charged moments during two days of impact statements given by victims’ family members and survivors.

Some described their pain and devastation while others assured him the community had met his hatred with love and unity. Later, another person also hugged the man who pleaded guilty in one of the deadliest mass shootings in the U.S.

Crusius, a white community college dropout, had posted online a screed about a Hispanic invasion of Texas before opening fire with an AK-style rifle at the store near the U.S.-Mexico border on Aug. 3, 2019. Crusius didn’t address the families and survivors at his plea hearing Monday. He will serve multiple life sentences after pleading guilty to capital murder and 22 counts of aggravated assault with a deadly weapon.

“We would have opened our doors to you to share a meal, breakfast lunch or dinner, Mexican-style, so then your ugly thoughts of us that have been instilled in you would have turned around,” Tinajero told him.
‘Hug you very tight’

Tinajero said her brother, 60-year-old Arturo Benavides, was a “kind, sweet-hearted person,” whose wife of over 30 years is broken hearted over her loss.

“Now she lives alone in their home full of memories that she can’t forget,” she said.

“I feel in my heart, to hug you very tight so you could feel my forgiveness, especially my loss, but I know it’s not allowed,” Tinajero said. “I want you to see and feel all of us who have been impacted by your actions.”

Later, the judge asked her: “Ma’am, would it truly bring you peace and comfort if you could hug him?”

’Yes,” she replied.

Her daughter, Melissa Tinajero, told reporters: “I don’t know how she was able to do it. I could not do that. But she showed him something he could not show his victims.”
‘A survivor, not a victim’

Stephanie Melendez told Crusius that she did not want to address him but rather read a letter to her father, 63-year-old David Johnson, who was killed when he shielded his wife and 9-year-old granddaughter from the gunfire.

Melendez thanked her father for making her study, giving her a curfew and telling her when she was 16 that she needed to get a job.

“You made me into the strong woman I am today,” she said.

Her daughter, Kaitlyn Melendez, now 14, told Crusius: “I am a survivor, not a victim.”

“I’m going to walk out these doors and move forward with my life and not let you haunt me anymore.”
‘A disgrace to humanity’

Dean Reckard, whose 63-year-old mother Margie Reckard was among those killed, expressed anger and forgiveness as he addressed Crusius.

“You’re a disgrace to humanity and to your family,” Reckard said, adding that he hopes Crusius wakes up each morning wishing he were dead.

But Reckard also said he forgave the gunman who will spend the rest of his life behind bars.

“In order to be forgiving, you have to forgive others,” he said. “That’s the only reason I forgive you. May God have mercy on your soul.”

Thousands of people attended Margie Reckard’s funeral after her partner of 22 years, Antonio Basco, invited the public to the service, saying he felt alone after her death.
‘Left me sad, bitter’

Liliana Munoz of Ciudad JuĂĄrez, Mexico, said in court Monday that she was shopping for snacks when Crusius opened fire, forever changing her life physically, economically and emotionally.

In her statement, she said she used to be a “happy, dancing person,” but now is afraid every morning when she awakes. Since she was shot, she has had to use a cane to walk and wears a leg brace to keep her left foot from dragging.

“It left me sad, bitter,” said the 41-year-old mother.

She also granted Crusius forgiveness.
‘You brought us together’

Javier Rodriguez was 15 and starting his sophomore year in high school when he was shot and killed at a bank in Walmart.

On Tuesday his father Francisco Rodriguez shouted at Crusius: “Look at me, I’m talking to you.”

He told Crusius that he and his family have to go to the cemetery to commemorate his son’s birthday.

“I wish I could just get five minutes with you — me and you — and get all of this, get it over with,” he said.

But Rodriguez also referred to comments made about Crusius’ impact on El Paso during his sentencing.

“Like the judge said yesterday, you came down to El Paso with the intention of tearing us apart, but all you did, you brought us together,” he said.

Fatal shooting leads to murder arrest

Fatal shooting leads to murder arrestLONGVIEW – An East Texas man was arrested after a fatal shooting on Tuesday afternoon making the incident the first homicide of the year in Longview, according to a report from our news partner KETK.

According to the department, around 2:47 p.m. officers responded to a shooting in the 900 block of Toler Road where they found Jonathan Ragland shot. He was pronounced dead at the scene. Officials said that the shooter left the scene before officers arrived, and later identified the suspect as Dalton Chandler Lawrence, 26 of Longview. Lawrence was arrested for murder, along with two outstanding warrants from Wood County.

“This is the first homicide of the year in Longview,” Longview Police Department said. “We do ask that if you saw anything in this area or know anything, please contact Longview Police.”

US stocks rally as Trump signals thaw in trade war, Tesla shares soar

Spencer Platt/Getty Images)

(NEW YORK) -- U.S. stocks rallied in early trading on Wednesday, one day after President Donald Trump said tariffs on China would “come down substantially.”

Trump also appeared to soften previous attacks on the Federal Reserve, saying late Tuesday he has "no intention" of firing top central banker Jerome Powell.

The Dow Jones Industrial Average jumped 625 points, or 1.6%, while the S&P 500 climbed 2.5%. The tech-heavy Nasdaq increased 3.4%.

Shares of electric carmaker Tesla surged 6.5% in the first trading since CEO Elon Musk said his time devoted to the Department of Government Efficiency would "drop significantly" next month, paving the way for his return to the company. Still, Tesla shares have fallen by nearly half since a December peak.

Musk described his work at DOGE as necessary, but he said that "working for the government to get the financial house in order is mostly done."

The uptick also took hold at the other so-called "Magnificent Seven" tech giants, which drove much of the gains in the S&P 500 over recent years.

Facebook parent Meta climbed 5%, while chipmaker Nvidia also increased 5%.

Earlier this month, Trump hiked tariffs on Chinese goods to a total of 145%, prompting China to respond with 125% levies on U.S. products.

The tit-for-tat measures escalated a trade war between the world’s two largest economies, but the White House this week appeared to signal a desire to ease the tensions.

Treasury Secretary Scott Bessent reportedly told a group of investors on Tuesday that "over the very near future, there will be a de-escalation" of the trade war with China. Bloomberg News first reported the remarks.

Bessent's comments, which came at a private JPMorgan event, sent stocks climbing on Tuesday afternoon. Trump echoed the sentiment hours later.

"145% is very high and it won’t be that high," Trump told reporters at the White House late Tuesday. "It won’t be anywhere near that high. It’ll come down substantially. But it won’t be zero."

This is a developing story. Please check back for updates.

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Body of missing man recovered from Kurth Lake

Body of missing man recovered from Kurth LakeLUFKIN – Our news partner, KETK, reports that the Lufkin Police Department has found the body of a man who was reported missing from his boat at Kurth Lake on Tuesday.

According to officials, the Angelina County Sheriff’s Office, Lufkin PD, divers with the Nacogdoches County Sheriff’s Office, the Lufkin Fire Department and the Texas Parks and Wildlife Game Wardens responded to reports of a man missing from his boat at around 1 p.m. The boat was found empty in a cove on Kurth Lake prompting first responders to deploy rescue boats and drones to search the water for anyone who had been on the boat.

Divers responded to Kurth Lake and a man’s body was found not too far away from where the boat was discovered, Lufkin Police said. Angelina County Precinct 4 Justice of the Peace Rodney Cheshire has ordered an autopsy.

Over 1 million pounds of food donated to the East Texas Food Bank

Over 1 million pounds of food donated to the East Texas Food BankTYLER – Dollar General recently announced that they donated more than 1.2 million pounds of food to the East Texas Food Bank in 2024, according to our news partner KETK.

On April 17, Dollar General said they’ve partnered with Texas Feeding America to donate 3.5 million pounds of food to 12 Texas food banks, including the East Texas Food Bank. Dollar General’s announcement comes after the East Texas Food Bank said they’ve lost over $850,000 worth of food from presidential cut backs.

“At Dollar General, we understand the challenges our neighbors may face in accessing affordable, nutritious food to provide themselves and their families,” Dollar General vice president of corporate social responsibility and philanthropy Denine Torr said. “With more than 47 million people in the U.S. currently facing hunger, we are committed to being a part of the solution through our partnership with the Feeding America network of partner food banks.” Continue reading Over 1 million pounds of food donated to the East Texas Food Bank

Seniors lost $4.8 billion to scammers in 2024: FBI

Karl-Josef Hildenbrand/picture alliance via Getty Images

(NEW YORK) -- Seniors lost $4.8 billion in 2024 to scammers, according to a report released Wednesday by the FBI.

In total, people in the United States lost $16.6 billion in 2024, representing a 33% increase in losses from 2023 to 2024.

"Every number in this report represents a real person, a victim whose trust was betrayed, whose financial security was compromised and whose voice deserves to be heard," Christopher Delzotto, the section chief of the FBI's Criminal Investigative Division, told reporters during a conference call.

Investment scams are when someone is tricked into investing in stocks, bonds, real estate or other assets with a return that is almost too good to be true, and losses among the public to scammers have increased over the past five years, according to statistics released in the report, with people losing $50.5 billion in total over that time frame.

The FBI receives an average of 836,000 reports of cyber fraud per year, according to the report. On average, people lost at least $20,000.

The FBI received 47,919 investment fraud complaints, and people lost almost $6 billion in 2024.

Those scammed lost $2 billion in business email compromise scams, which occurs when scammers pretend to be a supervisor or co-worker and ask for money or gift cards. Technology support scams, which happens when someone pretends a computer or other tech item has an issue, also netted more than $1 billion.

Toll scams, in which people get a text message that they have a toll bill outstanding, led to over 59,000 complaints, and people lost almost $130,000 in these scams. Emergency scams, which happen when someone calls a grandparent and pretends to be in distress, resulted in $2.7 million in losses.

People ages 50-59 saw the second-most losses behind seniors, at $2.5 billion.

California, Texas and Florida were the states with the most losses, according to the report.

FBI officials said on the call that the number may be underreported given that some people are embarrassed to admit they have been victims of scams.

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East Texas Rep’s bill to classify abortions as murder withdrawn

East Texas Rep’s bill to classify abortions as murder withdrawnTYLER – East Texas State Rep. Brent Money took to social media on Tuesday to express his disappointment that HB 2127 won’t be getting a public hearing this session.

According to our news partner KETK, the bill, which would amend the Texas Penal Code’s definition of homicide to include all abortions, was initially scheduled for a hearing on Tuesday but was then pulled from the schedule.

Abortion was made illegal in Texas in 2022 when the state’s “trigger law” went into effect following the U.S. Supreme Court’s overruling of Roe V. Wade.

On Monday, Money took to X and claimed that he was told the bill was pulled by the office of the Texas Speaker of the House which claimed it was pulled by Rep. John Smithee, the chair of the Committee on Criminal Jurisprudence. Continue reading East Texas Rep’s bill to classify abortions as murder withdrawn

Attendees vocalize displeasure with Rep Moran during town hall

Attendees vocalize displeasure with Rep Moran during town hallTYLER – U.S. Rep. Nathaniel Moran held a town hall forum on Tuesday night in Tyler where several attendees quickly became hostile according to our news partner KETK. The forum was initiated for Moran to speak on issues he is covering in D.C. However, hecklers quickly began interrupting the presentation and question and answer portion of the event.

“I expected to have a setting like we saw tonight,” Moran said. “I know folks want to engage personally and a lot of people want to set this up and a lot of members of Congress are not doing in person townhalls but I think it’s our responsibility to the constituents to do those face-to-face town halls to engage, to be transparent, to be accountable. I expected some emotions tonight and that’s what we saw.”

Attendees became upset as Moran did not answer their questions when they pressed him on issues, including abortion, due process and immigration policies.

Ryan Nichols, who considered running against Moran in the upcoming May elections, was seen shouting at Moran over his due process policies. Continue reading Attendees vocalize displeasure with Rep Moran during town hall

Texas man set to be executed for the 2004 strangling and stabbing death of a young mother

HOUSTON (AP) — A Texas man is facing execution Wednesday for the strangling and stabbing death of a young North Texas mother more than 20 years ago.

Moises Sandoval Mendoza was condemned for the March 2004 killing of 20-year-old Rachelle O’Neil Tolleson. Prosecutors say Mendoza took Tolleson from her home in Farmersville, leaving her 6-month-old daughter alone. The infant was found cold and wet but safe the next day by Tolleson’s mother. Tolleson’s body was found six days later near a creek.

Mendoza, 41, was scheduled to receive a lethal injection Wednesday evening at the state penitentiary in Huntsville.

Evidence in Mendoza’s case showed he also burned Tolleson’s body to hide his fingerprints. Dental records were used to identify her, according to investigators.

Mendoza’s lawyers have asked the U.S. Supreme Court to stop the scheduled execution after lower courts previously rejected his petitions for a stay. The Texas Board of Pardons and Paroles on Monday denied Mendoza’s request to commute his death sentence to a lesser penalty.

In their petition before the Supreme Court, Mendoza’s attorneys said he was prevented by lower courts from arguing that he had been denied effective assistance of counsel earlier in the appeals process.

Mendoza’s lawyers allege that a previous appeals attorney, as well as his trial lawyer, had failed to challenge critical testimony by a detention officer, Robert Hinton. That testimony was used by prosecutors to persuade jurors that Mendoza would be a future danger to society — a legal finding needed to secure a death sentence in Texas.

Mendoza’s lawyers allege the officer, who worked in the county jail where the inmate was being held after his arrest, gave false testimony that Mendoza had started a fight with another inmate. Mendoza’s lawyers say the other inmate now claims in an affidavit that he believed detention officers wanted him to start the fight, and he was later rewarded for it.

“There is no doubt the jury was listening. During its deliberations, the jury specifically asked about Mendoza’s ‘criminal acts while in jail,’ including the ‘assault on other inmate,’” Mendoza’s lawyers said in their petition to the Supreme Court. “As evidenced by the jury’s notes, there is a reasonable probability that trial counsel’s error in failing to investigate Hinton’s testimony affected the result.”

But the Texas Attorney General’s Office told the Supreme Court that Mendoza’s claim of ineffective assistance of counsel has already been found by a lower federal court to be “meritless and insubstantial.”

Even if the detention officer’s testimony were eliminated, the jury heard substantial evidence regarding Mendoza’s future dangerousness and his long history of violence, especially against women, including physically attacking his mother and sister and sexually assaulting a 14-year-old girl, according to the attorney general’s office.

“Finally, given the extreme delay in this two-decade-old case, the public interest weighs heavily against a stay. The State and crime victims have a ’powerful and legitimate interest in punishing the guilty,’” the attorney general’s office said in its petition.

Authorities said that in the days before the killing, Mendoza had attended a party at Tolleson’s home in Farmersville, about 45 miles (72 kilometers) northeast of Dallas. On the day her body was found, Mendoza told a friend about the killing. The friend called police and Mendoza was arrested.

Mendoza confessed to police but couldn’t give detectives a reason for his actions, authorities said. He told investigators he repeatedly choked Tolleson, sexually assaulted her and dragged her body to a field, where he choked her again and then stabbed her in the throat. He later moved her body to a more remote location and burned it.

If the execution is carried out, Mendoza would be the third inmate put to death this year in Texas, historically the nation’s busiest capital punishment state, and the 13th in the U.S.

On Thursday, Alabama planned to execute James Osgood for the 2010 rape and murder of a woman.

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Follow Juan A. Lozano: https://twitter.com/juanlozano70

Orders to leave the country sow confusion among immigrants

McALLEN, Texas (AP) — Hubert Montoya burst out laughing when the U.S. Department of Homeland Security emailed to say he should leave the country immediately or risk consequences of being deported. He is a U.S. citizen.

“I just thought it was absurd,” the Austin, Texas, immigration attorney said.

It was an apparent glitch in the Trump administration’s dismantling of another Biden-era policy that allowed people to live and work in the country temporarily. U.S. Customs and Border Protection is quietly revoking two-year permits of people who used an online appointment app at U.S. border crossings with Mexico called CBP One, which brought in more than 900,000 people starting in January 2023.

The revocation of CBP One permits has lacked the fanfare and formality of canceling Temporary Protected Status for hundreds of thousands whose homelands were previously deemed unsafe for return and humanitarian parole for others from Cuba, Haiti, Nicaragua and Venezuela who came with financial sponsors. Those moves came with official notices in the Federal Register and press releases. Judges halted them from taking effect after advocacy groups sued.

CBP One cancellation notices began landing in inboxes in late March without warning, some telling recipients to leave immediately and others giving them seven days. Targets included U.S. citizens.

Timothy J. Brenner, a Connecticut-born lawyer in Houston, was told April 11 to leave the U.S. “I became concerned that the administration has a list of immigration attorneys or a database that they’re trying to target to harass,” he said.

CBP confirmed in a statement that it issued notices terminating temporary legal status under CBP One. It did not say how many, just that they weren’t sent to all beneficiaries, which totaled 936,000 at the end of December.

CBP said notices may have been sent to unintended recipients, including attorneys, if beneficiaries provided contact information for U.S. citizens. It is addressing those situations case-by-case.

Online chat groups reflect fear and confusion, which, according to critics, is the administration’s intended effect. Brenner said three clients who received the notices chose to return to El Salvador after being told to leave.

“The fact that we don’t know how many people got this notice is part of the problem. We’re getting reports from attorneys and folks who don’t know what to make of the notice,” said Hillary Li, counsel for the Justice Action Center, an advocacy group.

President Donald Trump suspended CBP One for new arrivals his first day in office but those already in the U.S. believed they could stay at least until their two-year permits expired. The cancellation notices that some received ended that sense of temporary stability. “It is time for you to leave the United States,” the letters began.

“It’s really confusing,” said Robyn Barnard, senior director for refugee advocacy at Human Rights First. “Imagine how people who entered through that process feel when they’re hearing through their different community chats, rumors or screenshots that some friends have received notice and others didn’t.”

Attorneys say some CBP One beneficiaries may still be within a one-year window to file an asylum claim or seek other relief.

Notices have been sent to others whose removal orders are on hold under other forms of temporary protection. A federal judge in Massachusetts temporarily halted deportations for more than 500,000 Cubans, Haitians, Nicaraguans and Venezuelans who came since late 2022 after applying online with a financial sponsor and flying to a U.S. airport at their own expense.

Maria, a 48-year-old Nicaraguan woman who cheered Trump’s election and arrived via that path, said the notice telling her to leave landed like “a bomb. It paralyzed me.”

Maria, who asked to be named only by her middle name for fear of being detained and deported, said in a telephone interview from Florida that she would continue cleaning houses to support herself and file for asylum.

___

Salomon reported from Miami. Associated Press writers Rebecca Santana in Washington and Elliot Spagat in San Diego contributed.

City of Uvalde reaches settlement with families of school shooting victims

UVALDE (ABC) — An attorney representing the families of the Robb Elementary School mass shooting victims confirmed to ABC News on Tuesday night that a settlement was reached and approved by a unanimous vote at a city council meeting in Uvalde, Texas.

Josh Koskoff, one of the attorneys who filed the lawsuit against the city, did not specify the exact terms of the settlement.

The lawsuit responds to the circumstances surrounding the school shooting that took place on May 24, 2022, claiming the lives of two teachers and 19 students.

In addition to a monetary settlement that would be paid out by the city’s insurance, the families were asking for Uvalde Police to adopt new fitness standards for the force and boost officer training, attorneys announced at a press conference in May 2024.

At the time of filing the suit, Koskoff told ABC News that the plaintiffs also were asking the city to maintain the cemetery where many of the victims are buried and to provide an updated accounting of the donations and spending related to May 24.

The plaintiffs were also asking to designate May 24 as an official day of remembrance in Uvalde and to create a committee for a permanent memorial in town.

The attorney confirmed all 21 victims’ families were represented in the lawsuit, but didn’t disclose any others who are listed as plaintiffs.

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Man arrested for alleged sexual relationship with minor

Man arrested for alleged sexual relationship with minorTYLER – A Tyler man has been arrested for allegedly having a sexual relationship with a minor in exchange for nicotine devices, according to our news partner KETK. The Smith County Sheriff’s Office became aware of the case after being contacted by a girl’s guardians on March 4. One of her guardians revealed to a sheriff’s deputy that they discovered she had been having an improper relationship with a grown man while going through the girl’s phone.

According to officials, one of the victim’s guardians said text messages from the victim’s phone revealed she was having explicit conversations and spoke about having sexual relationships with a man whose contact name was ‘J’.

Further text messages revealed the victim was offering to give the man sexual favors in exchange for vapes and other nicotine devices. Text messages also revealed the two parties making arrangements to meet at a nearby oil field in regard to their deal. Continue reading Man arrested for alleged sexual relationship with minor

Tesla profits drop 71% amid anti-Musk backlash

Photo by Chip Somodevilla/Getty Images

(NEW YORK) -- Tesla's profits fell 71% over the first three months of this year, a company earnings release on Tuesday showed. The company's performance fell short of analysts' expectations.

The decline coincided with a sales slump and stock woes at the electric carmaker, and comes amid worldwide protests against CEO Elon Musk over his role in the Trump administration

Total revenue decreased by 9% from one year earlier, to $19.3 billion, while revenue derived from car sales plunged 20% over the first three months of 2025 compared to a year ago, the earnings showed.

In a statement, Tesla cautioned about business impacts as result of the "current tariff landscape," saying the company is "taking actions to stabilize the business in the medium to long-term and focus on maintaining its health."

"Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers," Tesla added.

The announcement holds implications for Musk, the world’s richest person, who derives much of his wealth from his Tesla holdings.

The new financial details arrive as some shareholders have called on Musk to step down from his White House role and return full-time to the helm of Tesla.

Musk, whose temporary status as a government employee expires next month, will likely face questions about his plans during a conference call with analysts after the earnings release.

“We view this as a fork-in-the-road time,” Dan Ives, a managing director of equity research at the investment firm Wedbush and a longtime Tesla booster, said in a memo to investors on Sunday.

Tesla shares have dropped in value by roughly half from an all-time high in December. Most of those losses have come since President Donald Trump took office and Musk began his controversial governmental cost-cutting efforts as the head of the newly created Department of Government Efficiency (DOGE).

Tesla remains a top electric carmaker but the company faces growing competition, especially from Chinese firms such as BYD.

Deliveries of Tesla vehicles over the first three months of 2025 dropped about 13% compared to the same period a year ago, the company said earlier this month.

When Tesla announced the decline in deliveries, the company made no mention of its CEO but did say that a "changeover of Model Y lines across all four of our factories led to the loss of several weeks of production in Q1," but added that "the ramp of the New Model Y continues to go well."

Tesla sold fewer cars in 2024 than it did the year prior, marking the company's first year-over-year sales decline in more than a decade, earnings released in January showed.

As rivals have challenged Tesla's dominance in the electric vehicle market, the company has promised a future revenue stream from autonomous taxis, also known as robotaxis.

Musk announced in late January that the company would roll out its robotaxi test program in Austin, Texas, in June. But within days, China-based competitor BYD unveiled advances in self-driving technology, which the company said was set to be included in models costing as little as $9,600.

Tesla boasts a more complete domestic supply chain than its rival U.S. carmakers but the company remains vulnerable to auto tariffs of the type President Trump imposed earlier this month, according to Musk.

“To be clear, this will affect the price of parts in Tesla cars that come from other countries. The cost impact is not trivial,” Musk said in a post on X in late March.

Gordon Johnson, CEO and founder of data firm GLJ Research, who is bearish on Tesla, voiced concerns about the company in a memo to investors on Monday, saying that the automaker faces a mix of “operational, financial, and reputational challenges.”

“Is Tesla facing an existential crisis?” Johnson added.

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