Elon Musk announced on Tuesday that he will scale back his role at the Department of Government Efficiency (DOGE), a position he took on after becoming head of SpaceX, in order to focus more on Tesla. The decision comes as the electric vehicle maker’s profits and sales have plummeted in recent months.
Musk stated that he would reduce his time allocation to DOGE to just a day or two per week starting next month. He defended his work with the agency, saying it was necessary to cut waste and fraud, but acknowledged that his presence may have contributed to uncertainty about trade policy affecting Tesla’s outlook.
Tesla reported its revenue fell 9% in the last quarter, with auto sales falling 20%. Adjusted income plummeted 39%, marking a significant drop from previous years. Musk attributed the decline to economic weakness and consumer uncertainty, despite protests and criticisms of his role in the Trump administration, which some believe has hurt Tesla’s sales.
Despite the challenges, Musk remains optimistic about Tesla’s future, citing its work on autonomous driving and humanoid robots as key to success. He promised that these efforts would lead to a period of “sustainable abundance for all.”
Shares of Tesla rose 4% in after-hours trading following Musk’s announcement. The company reaffirmed plans to release more affordable models by the end of June and expand its driverless services, although production timelines remain unclear.
Source: https://edition.cnn.com/2025/04/22/business/tesla-reports-disappoint-drop-in-revenue-and-profits/index.html