Catenaa, Wednesday, April 23, 2025-Elon Musk said he will step back from his federal government role next month to concentrate on Tesla after the electric vehicle maker reported a staggering 71% plunge in first-quarter profits, intensifying pressure on the billionaire CEO.
Speaking during Tesla’s earnings call Tuesday, Musk confirmed his “time allocation to DOGE will drop significantly” in May, referring to the Department of Government Efficiency — a White House unit he has led since President Donald Trump’s inauguration. Musk’s tenure at DOGE has been marked by sweeping federal layoffs and policy upheavals that have drawn widespread criticism.
Tesla’s earnings report revealed a 9% year-over-year drop in revenue and a 13% fall in vehicle sales for the quarter. The company’s stock closed at $238, down 37% since the start of the year. Analysts and shareholders largely blame Musk’s divisive political involvement for eroding the brand and distracting from Tesla’s core business.
Protests against Tesla have intensified globally, with dealerships and charging stations targeted by vandals. Meanwhile, Tesla has faced mounting competition from Chinese rivals and political fallout from Trump’s steep tariffs, which have clouded the company’s market outlook.
In a letter to shareholders, Tesla warned that evolving trade policy and shifting political sentiment could hurt demand. Musk, while advocating lower tariffs, acknowledged final decisions rest with the president.
Musk is expected to depart DOGE by May’s end when his special government employee status expires, though the agency’s work will continue. Musk reiterated Tesla’s future remains tied to autonomous driving, with testing for its Cybercab robotaxi expected to begin in June.
