Musk pledges to reduce involvement in White House duties
Analysts have connected Tesla's significant losses to the involvement of its CEO, Elon Musk, as a U.S. government efficiency czar. Elon Musk, who leads both Tesla and SpaceX, has announced plans to reduce his efforts in curbing government spending...
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Analysts have connected Tesla's significant losses to the involvement of its CEO, Elon Musk, as a U.S. government efficiency czar.
Elon Musk, who leads both Tesla and SpaceX, has announced plans to reduce his efforts in curbing government spending at the contentious U.S. Department of Government Efficiency and shift his focus back to his enterprises. In the first quarter of 2025, Tesla reported a staggering 71% decline in profits and a 9% drop in revenue.
However, Musk made it clear that he does not intend to completely disengage from his responsibilities at DOGE.
In a conference call with analysts on Tuesday, Musk explained that since the "major work of establishing the Department of Government Efficiency" has been accomplished, he is looking to devote more time to Tesla. He anticipates spending only "a day or two per week on government matters."
The Austin, Texas-based electric vehicle manufacturer recorded a net profit of $409 million in the first quarter of 2025, sharply down from $1.41 billion during the same period a year prior—marking the largest year-on-year decline in the company’s history. Additionally, Tesla's revenue decreased from $21.3 billion to $19.3 billion from January to March.
Analysts have primarily pointed to Musk’s role at DOGE as the cause of Tesla’s steepest decline in sales. The tech mogul has gained notoriety and become a divisive figure due to his close association with U.S. President Donald Trump and his oversight of the unofficial agency responsible for reducing government expenditure.
Since January, various Tesla-linked locations both in the United States and abroad have faced protests. Musk has insinuated that these demonstrations could be a coordinated effort funded by prominent Democratic donors, including George Soros.
During the call, Musk alleged, without providing supporting evidence, that the protests were initiated by "those who were receiving the wasteful and fraudulent dollars," asserting that violent acts against Tesla are "paid for."
"I think the right thing to do is fight the waste and fraud and try to get the country back on the right track," he stated. "If the ship of America goes down, Tesla will go with it."
Musk’s tenure as a special government employee is set to end by late May, at which point he is expected to fully return to his private ventures. DOGE, established under Trump’s executive order, will continue its operations at least until 2026.
Lucas Dupont for TROIB News
Elon Musk, who leads both Tesla and SpaceX, has announced plans to reduce his efforts in curbing government spending at the contentious U.S. Department of Government Efficiency and shift his focus back to his enterprises. In the first quarter of 2025, Tesla reported a staggering 71% decline in profits and a 9% drop in revenue.
However, Musk made it clear that he does not intend to completely disengage from his responsibilities at DOGE.
In a conference call with analysts on Tuesday, Musk explained that since the "major work of establishing the Department of Government Efficiency" has been accomplished, he is looking to devote more time to Tesla. He anticipates spending only "a day or two per week on government matters."
The Austin, Texas-based electric vehicle manufacturer recorded a net profit of $409 million in the first quarter of 2025, sharply down from $1.41 billion during the same period a year prior—marking the largest year-on-year decline in the company’s history. Additionally, Tesla's revenue decreased from $21.3 billion to $19.3 billion from January to March.
Analysts have primarily pointed to Musk’s role at DOGE as the cause of Tesla’s steepest decline in sales. The tech mogul has gained notoriety and become a divisive figure due to his close association with U.S. President Donald Trump and his oversight of the unofficial agency responsible for reducing government expenditure.
Since January, various Tesla-linked locations both in the United States and abroad have faced protests. Musk has insinuated that these demonstrations could be a coordinated effort funded by prominent Democratic donors, including George Soros.
During the call, Musk alleged, without providing supporting evidence, that the protests were initiated by "those who were receiving the wasteful and fraudulent dollars," asserting that violent acts against Tesla are "paid for."
"I think the right thing to do is fight the waste and fraud and try to get the country back on the right track," he stated. "If the ship of America goes down, Tesla will go with it."
Musk’s tenure as a special government employee is set to end by late May, at which point he is expected to fully return to his private ventures. DOGE, established under Trump’s executive order, will continue its operations at least until 2026.
Lucas Dupont for TROIB News
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