Elon Musk has informed Tesla investors that he will be reducing his involvement with the Trump administration’s Department of Government Efficiency (DOGE). “Starting probably in next month, in May, my time allocation to DOGE will drop significantly,” Musk stated during a Tesla earnings call.
Despite his reduced time commitment, Musk confirmed he won’t be stepping away from DOGE entirely. “Starting next month, I’ll be allocating far more of my time to Tesla,” he said, while noting he still expects to dedicate one to two days each week to government matters.
Following Musk’s announcement, Tesla shares rebounded slightly, gaining 4% to reach $247.53. That uptick came even as the company posted disappointing financial results for the first quarter: revenue dropped 9%, and profits fell a staggering 71%, reports CBS News.
“Musk’s personal brand has been permanently tarnished by his political activities in the last several months, and exiting DOGE won’t change that,” Adam Crisafulli of Vital Knowledge wrote in a research note on Tuesday. “On top of all this, the stock remains very expensive.”
Tesla is also grappling with industry-wide challenges that go beyond politics. Once a leader in the EV sector, it now faces stiff competition from both American companies like Ford and a wave of technologically advanced European vehicles.
Chinese automaker BYD has also raised the stakes, unveiling a fast-charging battery system capable of powering a vehicle in mere minutes. In addition, ongoing trade tensions with China pose another threat. Tesla recently halted orders for its Model S and Model X in mainland China, a move attributed to retaliatory tariffs. According to the Associated Press, Tesla continues to manufacture the Model 3 and Model Y for the Chinese market at its Shanghai facility.
