Elon Musk to Step Back from DOGE, Tesla Stock Surges

Elon Musk announced he's stepping back from his role in President Trump’s Department of Government Efficiency (DOGE) starting in May. The news came during Tesla’s earnings call, where he also addressed a 20% drop in revenue and a 71% plunge in net income. Despite this, Tesla stock jumped nearly 5% after his statement.

While Musk plans to reduce his involvement, he said he’ll continue to help DOGE part-time to ensure government “waste and fraud” don’t return. His appointment as a “special government employee” will expire as the administration reaches its 130-day limit.

DOGE, created after Musk donated $300 million to Trump’s campaign, slashed jobs across several federal agencies, including those regulating Tesla. Critics question its reported $160 billion in savings, and controversy grows as DOGE removes exaggerated claims from its site.

Protests against Tesla have intensified globally, fueled by Musk’s political ties and his support for Germany’s far-right AfD. Tesla faces brand damage, growing competition, and an aging product lineup—leading to its worst quarter since 2022.

With Elon pulling back from politics, Wall Street hopes for renewed focus on Tesla’s recovery.