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Elon Musk to step back from DOGE as Tesla battles profit slump
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Elon Musk announced on Tesla’s quarterly earnings call on Wednesday that he will “drop significantly” his participation in the Department of Government Efficiency (DOGE) beginning in May. The task force, a centerpiece of President Trump’s cost-cutting agenda, has drawn fire for sweeping job cuts and allegations of voter data misuse. Musk said the time reprieve will allow him to concentrate on Tesla’s operations, CBS News reported.
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Tesla’s earnings report underscored mounting pressures on electric vehicle makers. The company posted a 71% plunge in quarterly profit and a 9% decline in revenue, falling short of Wall Street forecasts. Its shares, which had slumped more than 50% from a December peak, jumped 4% on Musk’s DOGE announcement, closing at $247.53.
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However, analysts caution that the damage from Musk’s political affiliations may linger. “Musk’s personal brand has taken a hit due to his political affiliations, and stepping back from DOGE may not be enough to reverse that,” warned Adam Crisafulli of Vital Knowledge.
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Since its launch, DOGE has polarized opinion in Washington. Proponents praise its efforts to root out waste and fraud, while critics decry cuts to essential programs and question the use of voter data. The initiative has already spawned multiple lawsuits and drawn significant public backlash.
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Musk’s reduced involvement is unlikely to end the controversy, but it signals a strategic retreat as he grapples with pressing business challenges.
Tesla’s troubles extend beyond political controversies. Legacy automakers and deep-pocketed rivals in Europe and China are rolling out competitive EV models. Chinese manufacturer BYD recently unveiled a battery capable of recharging vehicles in minutes—a direct challenge to Tesla’s dominance in its largest overseas market.
Tensions with China have also forced Tesla’s hand: the company halted new orders for its Model S and Model X in mainland China earlier this month amid fears of retaliatory tariffs.
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Production of the more affordable Model 3 and Model Y continues at Tesla’s Shanghai plant for domestic consumers.
As Musk reorients his focus on Tesla, the company faces a confluence of political, competitive, and market headwinds. Balancing global expansion, product innovation, and brand perception will test the resilience of both Tesla and its high-profile CEO in the months ahead.
This article Elon Musk to step back from DOGE as Tesla battles profit slump appeared first on BreezyScroll.
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