Tesla shares surged after Elon Musk announced plans to step back from his role in the controversial government initiative DOGE (Department of Government Efficiency), launched by the Trump administration. While Musk won’t be disappearing from Washington entirely, he confirmed that starting in May, his involvement will be “significantly reduced.”

“I’ll still be around if the president needs me,” Musk told investors during Tesla’s earnings call. “But I won’t be as involved.” His statement came just hours after Tesla reported a 20% drop in automotive revenue and a staggering 71% plunge in net income — marking the worst quarter since 2022.

Musk’s Political Footprint Fades

DOGE was created after Musk poured nearly $300 million into Trump’s 2024 campaign, helping secure Trump’s return to the White House and earning Elon the nickname “America’s First Buddy.” Since then, he has overseen deep cuts across dozens of federal agencies, including watchdogs that oversee his own companies — such as the FAA and SEC.

But Musk’s time in Washington may be running out. By May, he’ll reach the 130-day limit for “special government employees,” a legal category that exempts him from stricter ethics rules. Unless he is reappointed, his role will officially expire.

DOGE: Cuts, Controversy, and Chaos

While DOGE claims to have saved the government $160 billion, its impact remains controversial. The DOGE website recently removed its most extreme savings projections after criticism from experts. Some agencies reported chaotic takeovers — the Department of Education, for example, said DOGE workers physically displaced senior officials and installed white noise devices to muffle conversations.

Tesla Struggles Amid Losses and Protests

While Musk battled bureaucracy, Tesla bled value. During his time with DOGE, the company’s market cap dropped by $600 billion. Meanwhile, protests erupted in Europe and the U.S., targeting Tesla over Musk’s political ties — including his vocal support for Germany’s far-right AfD party.

Some investors are now betting that Tesla might rebound if Musk refocuses on the company. And the first signs are encouraging: the stock jumped as soon as he announced his retreat from DOGE.

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