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Elon Musk announced he will reduce his involvement with the Department of Government Efficiency (DOGE) starting in May. Musk, who has been leading DOGE, stated he will spend only one to two days per week on government matters, focusing more on his role at Tesla. This decision comes amid concerns from Tesla investors about his divided attention and the company's recent financial struggles.
Tesla reported a significant drop in sales and profits for the first quarter of 2025, with a 20% decline in car sales and a 71% decrease in net income compared to the previous year. Musk's political involvement, particularly his work with DOGE, has sparked protests and boycotts of Tesla vehicles, affecting the company's brand reputation, especially among Democrats and liberals.
Despite the backlash, Musk remains committed to DOGE, saying he will continue his work as long as it is useful and the president desires it. Musk claims DOGE has been successful in reducing waste and fraud in the federal government, although these claims have been contested.
Tesla's share prices rose in after-hours trading following Musk's announcement, suggesting investor relief at his decision to refocus on Tesla. However, the company faces challenges, including competition from Chinese EV manufacturers and a decline in its share of the EV market in the U.S. Musk remains confident in Tesla's future, emphasizing the importance of artificial intelligence and autonomous technology for the company's long-term success.