Elon Musk has said the time he spends with Donald Trump’s Department of Government Efficiency (DOGE) will “drop significantly” from May and he will allocate more time to Tesla.
It comes after first-quarter profits at Tesla sank as the company grapples with falling sales, partly due to President Trump’s tariffs.
As a special government employee, Mr Musk was limited to 130 days in his role at DOGE, which is primarily aimed at slashing federal spending.
But the cuts, which included axing government jobs, have divided the country and prompted a backlash against his company, including protests and attacks on Tesla showrooms, prompting Donald Trump to label the vandals “terrorists”.
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Tesla said on Tuesday that quarterly profits fell by 71% to $409m (£306.77m) from $1.39bn (£1.04bn) in the first quarter of 2024. Revenues were also well below forecasts, dropping 9% to $19.3bn (£14.5bn) between January and March.
The company’s value has plummeted since reaching a record high in mid-December. Since then, Tesla’s share price has fallen more than 50%.
Tesla’s share price has tumbled following the financial market turbulence caused by the global trade war tariffs, competition from Chinese EV rivals and concern over Mr Musk’s ability to give the firm the attention it requires.
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Mr Musk’s role as chief executive of the company was among the most common questions shareholders were asking about in a question-and-answer portal ahead of an investor call on Tuesday evening.
As well as his role at the top of Tesla, he is also the CEO of space exploration company SpaceX and owns social media company X, formerly known as Twitter.
Musk has ‘lost focus’
An early Tesla investor Ross Gerber said in a recent interview with Sky’s Business Live that Mr Musk had lost his focus and was now too “divisive”.
There has been no clear sign of improvement at Tesla as much-awaited updates on making affordable cars and developing driverless technology left some questions unanswered.
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Work on an affordable car remained “on track for start of production in the first half of 2025”, Tesla’s financial results said, but no details on a prototype were given.
Production of Tesla’s self-driving robotaxi, named Cybercab, is scheduled to start in 2026.
Tariffs harming outlook
Uncertainty was also evident in the outlook statement, which pointed to the harm tariffs could pose to the business.
“It is difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains, our cost structure and demand for durable goods and related services,”
“The rate of growth this year will depend on a variety of factors, including the rate of acceleration of our autonomy efforts, production ramp at our factories and the broader macroeconomic environment”.
While Teslas are made in the US, there are also factories in China and Germany. Under the tariff regime, those car parts are subject to additional taxes when they enter America.
