Elon Musk to Cut White House Role As Tesla Profits Drop
Elon Musk has announced plans to reduce his involvement with the Trump administration to focus more on Tesla, following a sharp 71 per cent decline in the company’s first-quarter profits.
Speaking during an earnings call on Tuesday, Musk said, “Probably in the next month, my time allocation to DOGE will drop significantly,” referring to the “Department of Government Efficiency,” where he has played a major role under President Donald Trump.
Tesla reported $409 million in profit, down significantly amid falling vehicle sales. Analysts have linked the decline to damage to the Tesla brand due to Musk’s prominent role in Trump’s administration and its controversial reforms, including mass job cuts and access to sensitive government databases.
Revenue also dropped by nine per cent to $19.3 billion. The company pulled back its 2025 projections, blaming uncertainties surrounding trade policies and demand.
“Uncertainty in the automotive and energy markets continues to increase… this dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term,” the company stated.
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Tesla, however, said it remains on track to release more affordable models and its Robotaxi in Texas by June.
Despite mounting criticism, Musk defended his work for DOGE, calling detractors “paid beneficiaries” of government inefficiency.
He said the DOGE job was “mostly done” but noted he would still spend a day or two weekly on government matters.
Musk donated over $270 million to Trump’s 2024 campaign. Since Trump’s return to office, Tesla has faced consumer boycotts, vandalism, and a sharp drop in resale value.
Wedbush Securities analyst Dan Ives, a longtime Tesla supporter, welcomed Musk’s move, saying on X, “DOGE work basically ending… now his focus back on Tesla. (Wall) Street needed to hear this.”
Tariffs under Trump’s administration, particularly the 25 per cent levy on imported vehicles, were also flagged as a challenge.
Musk reiterated his support for lower tariffs, saying, “I’ve been on the record many times as saying that I believe lower tariffs are generally a good idea for prosperity.”
Tesla shares rose 4.7 per cent in after-hours trading following the announcement.
Titilope Adako is a talented and intrepid journalist, dedicated to shedding light on the untold stories of Osun State and Nigeria. Through incisive reporting, she tackles a broad spectrum of topics, from politics and social justice to culture and entertainment, with a commitment to accuracy, empathy, and inspiring positive change.
