Musk to reduce Doge role after Tesla profits plunge
Elon Musk has announced he will scale back his involvement with the U.S. government’s Department for Government Efficiency (Doge), following a sharp decline in Tesla’s profits and vehicle sales. Starting next month, Musk will dedicate just one to two days per week to Doge, saying he will now “allocate far more time to Tesla.”
Political Involvement Fuels Controversy
Since taking the helm of Doge last year, Musk has been at the center of U.S. cost-cutting efforts, sparking global protests and Tesla boycotts. While temporary government roles like Musk’s are capped at 130 days annually, it's unclear when he will fully step down. Despite controversy, Musk called the role “critical,” and expressed willingness to stay on “as long as the president wants.”
Tesla Faces Mounting Challenges
Tesla reported a 20% drop in sales and over 70% decline in profits in Q1. The company cited political unrest and trade tensions as major headwinds, warning that demand could suffer in the near term. Shares dropped 37% this year, though they rose 5% in after-hours trading following the earnings release.
Trade Tensions and Internal Rifts
U.S. tariffs on Chinese imports continue to pressure Tesla’s supply chain, despite its localized operations. Musk, critical of high tariffs, said he would keep advocating for lower trade barriers. His clashes with Trump officials, notably calling trade adviser Peter Navarro a “moron,” have further stirred headlines.
Eyes Back on Innovation
While Tesla points to artificial intelligence as a key to future growth, investor confidence remains shaky. With fierce competition and geopolitical risks looming, analysts warn the company’s problems are far from over. Musk’s renewed focus on Tesla may be crucial in regaining momentum and trust.
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