Elon Musk to step back from DOGE, focus on Tesla after profits plunge 71%

Elon Musk, the CEO of Tesla and a Senior Advisor to the President of the United States, announced on Tuesday that he will reduce his involvement with the Department of Government Efficiency next month to dedicate more time to Tesla. This decision comes after Tesla experienced a 71% decline in profits.

During Tesla’s earnings call, Musk stated, “Starting next month, I will be allocating far more of my time to Tesla. My time allocation to DOGE will drop significantly.” He also mentioned that he plans to continue spending a day or two per week on government matters for as long as it is requested and beneficial.

Musk, who is also the chief executive officer of Tesla, had already planned to step down from his role with DOGE by the end of May when his special government employee status expires. He acknowledged that the backlash and vandalism against Tesla since his involvement with the Trump administration have impacted certain markets.

Despite the challenges faced by Tesla, Musk assured shareholders that the demand for Tesla vehicles remains strong. The company reported a 9% decrease in revenue and a 71% drop in earnings per share compared to the previous year. Musk attributed the decline in Tesla’s stock price to lower sales, dealership damage, and ongoing criticism since he became a senior adviser to President Donald Trump.

Although Tesla has been the target of protests and attacks, Musk expressed his intention to continue supporting Trump and DOGE. He emphasized the importance of preventing waste and fraud and advocated for predictable tariff structures and free trade. Following Musk’s statements, Tesla’s stock showed a positive trend in after-hours trading.