"Musk to Scale Back Involvement with Trump Following Tesla Profit Decline"

Elon Musk to Scale Back Role in Trump Administration After Tesla Profit Plunge

Tesla CEO Elon Musk announced plans to reduce his involvement with the administration of U.S. President Donald Trump following a sharp drop in Tesla’s first-quarter profits. Musk, who currently heads the Trump administration’s Department of Government Efficiency (DOGE), said on Tuesday that he would be dedicating significantly more time to overseeing Tesla operations starting in May.

In a conference call with Wall Street analysts, Musk stated that he would reduce his government role to just one or two days per week. “The large slog of work necessary to get the DOGE team in place and working with the government to get the financial house in order is mostly done,” he said. This shift comes amid growing concerns from investors that Musk’s dual commitments were negatively impacting Tesla’s performance.

Tesla shares, which have fallen over 40 percent since the beginning of the year, saw a modest recovery in after-hours trading, rising 4.6 percent following Musk’s remarks. The comments appeared to reassure investors worried about Musk’s divided focus between his government role and responsibilities as CEO of the electric vehicle giant.

Musk’s statement came shortly after Tesla reported a significant 71 percent year-over-year decline in net income for the January to March period. The company posted a profit of $409 million, a steep drop from $1.39 billion during the same quarter in the previous year. Global sales also declined by 13 percent, with industry analysts attributing the slump in part to a growing backlash against Musk’s ties to the Trump administration.

In recent months, Tesla has found itself at the center of political controversy. The automaker has been a target of numerous acts of vandalism and arson across several countries, with its dealerships, charging stations, and vehicles singled out by protesters opposing Trump’s policies. These incidents have contributed to a tarnished public image and shaken investor confidence.

Adding to the company’s challenges is the impact of the Trump administration’s 25 percent tariff on auto imports. Tesla, which manufactures vehicles for the U.S. market in Texas and California, still depends heavily on imported components from Mexico. The tariff has disrupted supply chains and added financial strain to the company’s operations.

Despite the mounting criticism, Musk defended his work with DOGE during the earnings call, framing it as a patriotic duty. “My efforts are aimed at reducing fraud and waste, and helping get the country back on the right track,” he said. Emphasizing the broader implications, he added, “If the ship of America goes down, we all go down with it—including Tesla and everyone else.”

With the immediate government setup duties now largely completed, Musk’s decision to refocus on Tesla could mark a turning point for the company as it attempts to navigate a volatile market and regain investor trust.