Elon Musk, the CEO of Tesla, announced that he will reduce his involvement with the Trump administration. This decision comes after Tesla reported a significant drop in profits for the first quarter of the year. Musk, who has been leading the Department of Government Efficiency (DOGE), stated that he will focus more on Tesla and limit his government work to just one or two days a week starting in May.
During a conference call with Wall Street analysts, Musk explained that the initial heavy lifting of organizing the DOGE team and addressing financial issues is mostly complete. Tesla’s shares, which have fallen over 40 percent since the beginning of the year, saw a 4.6 percent increase in after-hours trading following Musk’s announcement. Investors seemed relieved by the prospect of Musk dedicating more time to Tesla.
Tesla’s earnings report showed a staggering 71 percent decline in net profit, dropping to $409 million from $1.39 billion the previous year. The company also experienced a 13 percent decrease in global sales during the same period. This decline has been partly attributed to backlash against Musk’s ties to the Trump administration, with protests targeting Tesla vehicles and facilities.
Musk defended his role in the government, stating that his efforts were aimed at reducing fraud and waste and helping the country improve. He emphasized the interconnectedness of the American economy, saying that if the country struggles, Tesla and others will too.
As Tesla continues to face challenges, including tariffs on auto imports and protests against its leadership, Musk’s shift in focus may be a crucial step in stabilizing the company.