Billionaire entrepreneur Elon Musk has announced a significant shift in his priorities, stating he will cut back his role at the Department of Government Efficiency (DOGE) under US President Donald Trump to just one or two days a week starting May. The move comes amid intense public criticism and a massive 71% drop in Tesla’s quarterly profits.
Speaking during a conference call with investors, Musk said,
“I think starting probably next month, in May, my time allocation to DOGE will drop significantly.”
The Tesla CEO’s 130-day stint as a special government employee is set to expire in late May. During his time at DOGE, Musk led controversial restructuring efforts, dismantling several federal agencies, which led to lawsuits and political backlash. Despite this, Musk defended his actions, calling it a “necessary step to increase efficiency in governance.”
Backlash and Investor Pressure
Musk’s decision follows growing concerns from Tesla investors, who have accused him of being too distracted by politics to manage the company effectively. Tesla’s aging vehicle lineup has struggled in the market, and the company now faces tough competition in the EV space.
“This is a big step in the right direction. Investors wanted to see him recommit to Tesla,” said Dan Ives of Wedbush Securities.
Tesla’s Financial Struggles
In its first-quarter report, Tesla revealed:
- Profits fell 71% to $409 million
- Earnings dropped to just 12 cents a share
- Revenue slipped 9% to $19.3 billion, missing Wall Street expectations
The results have raised alarms among shareholders, some of whom blame Musk’s DOGE involvement for the company’s poor performance.
What’s Next for Tesla and Musk?
With Musk refocusing on Tesla, industry watchers expect him to prioritize product innovation and regain market share. While his time at DOGE may be winding down, the effects of his political detour are still unfolding.
As Tesla navigates a challenging period, all eyes will be on Musk to see whether his renewed focus can reverse the company’s downward spiral.
