Elon Musk stated on Tuesday that he is prepared to exit Washington starting in May, while Tesla is trying to recover from a dismal financial quarter.
Elon confirmed on Tesla's earnings call that his position at the Department of Government Efficiency under President Donald Trump (DOGE) will be 'significantly' reduced next month. Following this statement, Tesla's stock soared nearly 5% in after-hours trading.
Elon told investors that while he is stepping down from the presidency, he will continue to assist the Dogecoin project, 'to ensure that the waste and fraud we eradicated do not come back.' He also stated that as long as the president allows, he will continue to spend one or two days a week handling government affairs.
Just minutes after Tesla announced a 20% drop in automotive revenue for the first quarter and a 71% drop in net income, the company made this comment.
Elon Musk's political influence is waning after spending nearly $300 million to help Trump get elected.
According to the Associated Press, Elon created DOGE after investing nearly $300 million in Trump's 2024 campaign, which helped Trump return to the White House and made Elon the 'first partner' of the nation (as he referred to himself).
In the past three months, DOGE has attacked agencies including the IRS, National Park Service, Consumer Financial Protection Bureau, as well as the Departments of Agriculture, Education, Energy, Health and Human Services, Homeland Security, and Veterans Affairs.
DOGE also launched attacks on the federal agencies responsible for overseeing Elon’s businesses—the Securities and Exchange Commission (SEC), the Federal Aviation Administration (FAA), and the National Highway Traffic Safety Administration (NHTSA). During Elon's continued tenure in government, these agencies underwent massive layoffs under DOGE’s leadership.
In February, the White House designated Elon as a 'special government employee,' a legal title that relaxed ethical standards and lowered the threshold for disclosing conflicts of interest. The Department of Justice stated that this category applies to individuals who work no more than 130 days per year.
By the end of May, Trump's term will reach 130 days, which means Elon's federal employment window will close unless he is reappointed in a different capacity.
During the period when Dogecoin was active, Tesla's market value plummeted. So far, the company's market value has evaporated by about $600 billion. Meanwhile, Dogecoin's website (last updated on Sunday) claimed it saved the government $160 billion. But not everyone believes these figures. After facing backlash, Dogecoin has removed some of the most extreme savings projections from its website.
Tesla remains under strong opposition.
Elon also discussed the protests against Tesla, which have erupted in Europe and the United States. During the call, he attributed the strong reaction to 'well-organized' protest groups and claimed—without evidence—that some people gathered together because they had 'received scam money' or 'accepted extravagant generosity.' He did not elaborate further.
Protests have intensified public anger over Elon’s growing political connections, including his public support for the far-right Alternative for Germany (AfD). These connections have severely damaged Tesla's brand trust, especially in overseas markets. Tesla also faces pressure from an outdated electric vehicle product line and increasing competition from Chinese car manufacturers.
The company reported its worst quarterly performance since 2022, with its stock price down 41% in 2025 alone. Despite the poor results, the company’s stock surged after Trump indicated on Tuesday that he did not plan to remove Federal Reserve Chairman Jerome Powell, a move that temporarily boosted investor confidence.
Inside the government office, what DOGE staff did was more than just organizing work. In February, Department of Education employees stated that DOGE personnel drove senior officials out of the office, rearranged furniture, and installed white noise devices to muffle conversations. This chaos raised the alert of Congress. US senators warned that DOGE may have obtained federal student loan data related to tens of millions of borrowers.
Every move Elon makes within the government—every agency he interacts with—is now under stricter scrutiny as he prepares to withdraw. Whether Dogecoin’s sell-off is effective or not, one thing is certain: Wall Street believes that if Elon spent more time in the office and less time damaging furniture in Washington, Tesla's prospects might be better.