Musk Announces He Will Reduce His Involvement with DOGE Next Month
The statement was made following Tesla’s announcement of diminished profits and revenue for the first quarter of 2025.
Tesla CEO Elon Musk informed investors on Tuesday that his involvement with the Department of Government Efficiency (DOGE) will significantly reduce as he intends to dedicate more time to his automotive enterprise.
This announcement coincided with Tesla’s release on April 22, detailing a substantial decline in profits and revenue for the first quarter of 2025, as the company grapples with intense competition and unfavorable political sentiments directed at Musk.
“Starting next month, I plan to devote a lot more of my time to Tesla, now that the bulk of establishing the Department of Government Efficiency is completed,” Musk stated during the investor call.
He further emphasized his ongoing support for the Trump administration’s DOGE initiative “to ensure that the waste and fraud we have curtailed don’t come back with a vengeance.”
Musk’s position within the White House, as well as his role in DOGE—an initiative launched by President Donald Trump to pinpoint and eliminate wasteful government spending—has faced legal challenges, along with protests occurring nationwide at Tesla dealerships and charging locations. Some individuals have vandalized or attempted to damage Tesla vehicles and property, leading to federal charges against multiple persons.
Tesla reported net earnings of $409 million on $19.3 billion in revenue, marking a staggering 71 percent year-over-year drop in income and a 9.4 percent fall in revenue. Additionally, the company noted $595 million in revenue from other auto manufacturers for carbon credits, which represents a notable increase from the prior year.
Related Stories
The company also reported a 20 percent year-over-year decline in automotive revenue, dropping from $17.4 billion in the first quarter of the previous year to $13.9 billion this year.
In its letter to shareholders, the company highlighted that ongoing uncertainty surrounding U.S. tariffs and “shifting political sentiments” are likely to continue exerting downward pressure on its revenues and profits.
The Trump administration has imposed a 25 percent tariff on all auto imports to the United States. Tesla produces its vehicles sold in the U.S. at its facilities in California and Texas, yet relies on international sources for various components.
“Uncertainty in the automotive and energy markets is escalating as rapidly changing trade policies negatively affect the global supply chain and cost structures for Tesla and our competitors,” the company stated. “This situation, along with changing political sentiments, could significantly influence demand for our products in the short term.”
Musk addressed the protests against Tesla during the investor call, remarking that “those who were benefiting from the wasteful and fraudulent funds will likely attempt to target me, the DOGE team, and anything related to me.”
“Those profiting from the waste and fraud wish to maintain their benefits,” he added.
Tesla’s stock has also experienced a downturn recently. As of Tuesday afternoon, the company’s shares have fallen more than 37 percent since the beginning of the year, even though they have risen over 67 percent on a year-over-year basis.
During remarks last month, Musk indicated that his involvement in the Trump administration and DOGE had contributed to the decline in the company’s stock, alongside incidents of protests, vandalism, and arson targeting Tesla.
“This has proven to be a very costly job,” Musk expressed during a town hall event in Green Bay, Wisconsin, on March 30, referring to his governmental role.
“What [protestors and vandals] are attempting to do is exert significant pressure on me, and on Tesla, I suppose, to … halt this work,” he explained.
In light of the political challenges, Musk stated, “the value of Tesla stock, and that of all who hold it, has roughly halved.” He remarked, “This is a serious issue.”
Reuters contributed to this report.
