Tesla CEO Elon Musk says he’s cutting back on his role with the Department of Government Efficiency (DOGE). Starting in May, he plans to spend only one or two days each week on DOGE work. He wants to focus more on Tesla.
Why He’s Making the Change
Tesla’s profits dropped sharply in the first quarter of 2025. The company earned $409 million, which is down 71% from the same time last year. Revenue also fell by 9%, landing at $19.3 billion. Fewer cars were delivered, and the average price of each vehicle went down.
“Starting next month, I will be allocating far more of my time to Tesla,”
He said,
“the major work of establishing the Department of Government Efficiency is done.”
Musk said he still supports DOGE’s goals, like reducing waste in government. But right now, he believes Tesla needs more of his attention.
Investor Reaction Was Positive
After Musk’s announcement, Tesla’s stock price rose over 5% in after-hours trading. Some investors had been worried that his government role was distracting him from the company. Analysts, including Wedbush’s Dan Ives, had expressed concerns about this in the past.
What’s Next for Tesla
Tesla is working on several big projects. One is the launch of the Cybercab robotaxi service in Austin. That’s expected to begin in June 2025.
The company also plans to roll out new low-cost electric vehicles in the first half of the year. These moves aim to boost sales and make EVs more affordable.
Musk Still Involved in Politics, But Less So
Musk said he’ll continue to support the Trump administration through the end of its term. But his direct work with DOGE will be limited.
He also spoke about tariffs during the company’s earnings call. He said Tesla can handle them better than others, since it builds cars in the same regions where it sells them.
Bottom Line
Musk is stepping back from his work with DOGE so he can focus on Tesla’s performance and upcoming launches. Investors seem to welcome the shift. The company is now looking ahead to a busy year with several product rollouts.
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