Elon Musk will significantly scale back his Trump administration work in May to focus on Tesla, the billionaire announced Tuesday as the electric vehicle maker reported a 71 percent drop in first-quarter profits.
"Probably in the next month, my time allocation to DOGE will drop significantly," Musk said at the outset of an earnings conference call, referring to his work for the "Department of Government Efficiency."
The comments came as Tesla reported profits of $409 million following a drop in auto sales that analysts said reflected brand damage due to Musk's work for President Donald Trump in slashing the US federal workforce.
Revenues fell nine percent to $19.3 billion.
The company retreated from its 2025 guidance, citing unpredictability over trade policy and demand.
"Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers," the company said. "This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near-term."
On the positive side, Tesla said it was on track to launch new vehicles "including more affordable models" in the first half of 2025.
Tesla also confirmed in a press release that a planned launch of its Robotaxi for autonomous driving in Texas remained "on track" by June.
Musk reiterated his bullish outlook on the long-term prospects for Tesla, highlighting its leadership in key growth areas: robotics, autonomous driving and artificial intelligence.
Musk, the world's richest person, donated more than $270 million to Trump's 2024 presidential campaign.
Analysts have warned of significant brand damage to Tesla from Musk's leadership role in DOGE, which has granted itself access to government databases with sensitive personal information and implemented thousands of job cuts.
The shakeup to U.S. government operations has led to questions about programs like the Social Security retirement benefit and the continuation of programs like hurricane forecasting and humanitarian aid.
Since Trump returned to the White House, Tesla has been targeted for consumer boycotts and vandalism while sales have dived across many markets and prices of used Teslas have plunged in a sign of the brand's unpopularity.
On the call, Tesla Chief Financial Officer Vaibhav Taneja described the reaction as "unwarranted hostility to our brand."
In his opening comments, Musk defended his work for DOGE, dismissing critics as "paid" beneficiaries of the "waste and fraud" he alleges.
But Musk said the work for DOGE was "mostly done," adding he would not exit government work entirely.
"I think I'll continue to spend a day or two per week on government matters, or as long as the president would like me to do so, and as long as it is useful," Musk said. "But starting next month, I'll be allocating far more of my time to Tesla."
Wedbush Securities analyst Dan Ives, a longtime backer of Tesla who called on Musk to wind down his DOGE work, praised the CEO's announcement.
"Musk just made a huge step forward on call," Ives said on X. "DOGE work basically ending (1-2 days a week)... now his focus back on Tesla. (Wall) Street needed to hear this."
Besides its image, Tesla pointed to tariffs as another headwind for the company, while noting the EV maker is better situated than rivals that rely extensively on imported vehicles in the United States.
The Trump administration has enacted 25 percent tariffs on imported autos.
"I will weigh in with my advice with president, which he will listen to... but then it's up to him, of course, to make his decision," Musk said of Trump.
"I've been on the record many times as saying that I believe lower tariffs are generally a good idea for prosperity."
Shares of Tesla rose 4.7 percent in after-hours trading.
© 2025 AFP
39 Comments
wtfjapan
yet Muck said he wasnt going anywhere,
seems like the consumer has the power, and they are pizzed. LOL
funkymofo
Tesla is toast.
Tokyo Guy
Great news. Hope the company goes under and Musk ends up being sued into the next world.
Fox / MÅGA: "71 per cent isn't a plunge, it's a (gets dictionary out)...can't read that...or that...oh, I can read this, "dip". It's a "dip". And anyway the radical left wöke Soros globalist elite are working behind the scenes to destroy Tesla and Musk and it's anyone's fault but Musk's or Trump's because is it time for a commercial break yet I'm running out of breath"
Express sister
The Independent reports that he is upsetty spaghetti that people keep making fun of him and his dumb decisions, and is extremely unpopular among the cabinet.
wallace
Musk's contract was for 123 days, but he and Trump decided not to renew it.
wallace
Trump introduced tariffs on all items and all countries to reduce US imports, but during his term, they have more than doubled as supply chains try to beat his tariffs.
stormcrow
One amazing thing Musk has done as the head of DOGE was in going from an admired though odd character to a villain despised by many.
Cephus
Wallace,
"Musk's contract was for 123 days, but he and Trump decided not to renew it."
Yes but the poor left make it look like it's because of Tesla.
wallace
Cephus
Wallace,
"Musk's contract was for 123 days, but he and Trump decided not to renew it."
I think the fall in value of Tesla stock, the fall in sales, and the attacks on Tesla dealerships also influenced Musk's decision.
lincolnman
The guy that bankrupted a casino hires the guy that's bankrupting an EV company...
Together they attempt to bankrupt the country...
Trump 2.0 summarized...
BB
Whatever. He's permanently damaged the brand. He blames "paid protestors" for demonstrations -- his soul is so corrupted by money that he can't fathom people actually detesting him because of DOGE, his Nazi salute and embrace of white nationalists on X.
Cephus
Wallace,
"I think the fall in value of Tesla stock, the fall in sales, and the attacks on Tesla dealerships also influenced Musk's decision."
Elon is wealthy enough and Tesla is doing just fine. But the noise from the left is too much. Perhaps he need and deserve a good earned rest.
I'veSeenFootage
So, to sum up, the dude that promised to cut $2 trillion in federal spending and root out fraud, waste and abuse, actually found no fraud, waste and abuse anywhere and managed to only save "$150 billion" (his own number, which means in reality it's maybe half of that) by cutting foreign aid and firing people, all the while tanking the stock of his main company even though he had the president himself do an infomercial for it on the White House lawn.
... Or, as MAGA puts it, "WINNING!".
wallace
Cephus
Wallace,
"I think the fall in value of Tesla stock, the fall in sales, and the attacks on Tesla dealerships also influenced Musk's decision."
Tesla is not doing fine, and the stockholders are complaining about his lack of business attention. The CEO doesn't get to have a rest unless they want to stand out. Musk and Trump both react to negative reactions from others. They both have short attention spans.
Mostly, it's Republicans who hold Tesla stocks.
Wasabi
he also bought a president, so...
lincolnman
So Tesla's stock is plummeting? Wonder why? Maybe it's because...
EV are mostly purchased by progressives - who Musk calls "radical, leftist, idiots"....what better way to convince someone to buy your product than by insulating them...
Musk heads up DOGE which is throwing people out of work left and right - of course people without jobs always buy new cars...
Trump has for years called EVs a "hoax" and a "scam" that "steal US jobs"....maybe his supporters took his word for it...
Of course he then did a complete FLIP-FLOP two months ago and now says they're "fantastic"....leading to "mass confusion" among the MAGA-masses...
"The Art of MAGA Failing"....
Tokyo Guy
Tesla is doing just fine.
If a 71 per cent drop is "just fine", I'd love to hear your definition of "in trouble".
Cephus
Wallace,
"Tesla is not doing fine, and the stockholders are complaining about his lack of business attention. The CEO doesn't get to have a rest unless they want to stand out. Musk and Trump both react to negative reactions from others. They both have short attention spans."
You missed the point, Tesla can go bankrupt today and Elon would still be the wealthiest man in the world. He has diversified his business. Therefore, it's very difficult for the left to control his thoughts and actions.
I'veSeenFootage
Around 75% of his wealth is Tesla stock, so he literally wouldn't.
Fountain
Ha ha.
A rat deserting the ship.
Tesla is done, by the way Mr Musk. Your image and that of your company is in complete ruins.
Desert Tortoise
Probably the only thing that would save Tesla is for the board of directors to kick him out. He would not be the first Tesla CEO fired by the board. His predecessor and the real brains behind the brand Martin Eberhard was likewise fired and the board appointed Elon Musk in his place. Musk was not a co-founder of Tesla. He was an early investor who became the largest shareholder and who engineered a crisis on the governing board to force the original founders out of the company and take it over. But the board could fire him just as they fired Martin Eberhard.
There is similar precedent in the board of an old German auto company, Horch, firing the founder Augustine Horch for spending, or wasting in the board's view, all the company's money on making sports cars instead of a high volume and thus profitable product. Horch would go on to found another auto maker that a nephew suggested he call Audi ( Horch is the German verb "to hear", Audi is the Latin verb for the same ).
Desert Tortoise
A company who's sales have declined globally for the first time in over a decade and who's profits are down by more than 70% is not "doing just fine".
bass4funk
Reduce, not quit
Desert Tortoise
I will spend two to three times as much for a premium German made lithium iron phosphate battery back up system for my solar arrays than I would pay for a Power Wall 3 because I refuse to enrich that miserable Elon Musk with my hard earned. I will also get a 50% longer warranty so the higher price is justified by greater value ( Sonnen ecoLynx ).
wallace
Forbes estimates that Musk’s 42% stake in his rocket maker is now worth $147 billion–nearly $20 billion more than his Tesla stock and options.
Tokyo Guy
Reduce, not quit
Fair point. I think we'd all be happy with, say, 99%.
Fountain
@Cephus
The way you MAGAts are in complete denial of anything that isn’t rosy in the garden of Trump, Musk et al. is astounding. Even when presented with cold, hard facts like Tesla’s first quarter profits being down by 71%.
No wonder no one takes you guys seriously.
HappySmiles
Musk has damaged his and Tesla’s reputation. The quality of the products don’t matter anymore.
Most people don’t want to be associated with him.
wallace
If Trump and Musk want to continue, Musk will require a new special employee contract for 123 days otherwise, he needs a congressional vote.
Desert Tortoise
It is more than just being associated with him. It is not wanting to further enrich someone who in many cases views his customers as political and social enemies. Why would you went to enrich the guy if he is going to use his wealth to do you harm?
HopeSpringsEternal
Elon Musk built DOGE team, including its management, who gave extensive exclusive interviews to Brett Baier of Fox news in March. Recommend people check it out, some TOP Silicon Valley talent.
Whether Musk sticks around or not, DOGE will continue its mission, including upgrading Govt. IT Systems. But VP Vance has stated that no matter what Elon's role remains at DOGE, he'll continue to be a close Advisor to DJT.
Makes sense, given Elon's built very powerful Republican political machine, that'll continue to be very active regarding Govt. policies, legislation, elections, etc.
starpunk
Never trust somebody who jumps up and cheers 'yeah yeah!' like some dumb skippy kid while that ugly grumpy Fuehrer bellows his loudmouth hatred and ego.
One of these days, EVs will be the dominant form of car, but people aren't going to buy those ugly Tesla hunks of junk now. F-Elon has explicitly shown his True Colors, perhaps left over from the apartheid days of his native South Africa. Not only that, but he also restored the X account of the blabbermouth hatemonger fascist trumpChump, and he himself has openly sassed off explicit antisemitic tripe.
And all those firings, all that DOGE/DEI totalitarian Newspeak trash-talking and Orwellian bull.
WHY would anyone want to be associated with scum like the Muskrat? He and Putin are the true masters of America, with trump on their leash. Americans are sick and tired of all these lies and crap. We're at our nadir.
HopeSpringsEternal
One of the most respected Members of Congress, Speaker Mike Johnson, can't say enough about the important contributions Elon Musk has already made as a result of DOGE team and their ongoing digital audits.
If you listen to US Govt's #3, Johnson, he'll states ONLY due to Elon Musk, that US Govt. will soon be on sound financial footing and US Govt. will soon be able to deliver its services far more cost effectively as a result.
wtfjapan
Yes but the poor left make it look like it's because of Tesla.
no not just the left, Tesla shareholders, theyve said come back to work or resign as CEO. cant get much more direct than that. Its clear Muck has done more damge to the brand than anynody could have realised , even himself
Underworld
Cephus
"Tesla is not doing fine, and the stockholders are complaining about his lack of business attention. The CEO doesn't get to have a rest unless they want to stand out. Musk and Trump both react to negative reactions from others. They both have short attention spans."
Nope he wouldn't. Much of Musk's wealth is Tesla shares, but not only that, loans are backed by Tesla shares, which would get margin calls if the value of the shares falls too much.
TokyoLiving
Pathetic loser, keep sinking..
HopeSpringsEternal
Musk's official holdings in SpaceX at valuation $375B valuation, which is very lite, no sellers, is about $150B alone. He also has huge amounts of performance-based Tesla shares he's vested, that's now being litigated.
Musk's holdings in X.ai, which just merged with X is also worth WAY north of $50B and he has other valuable private companies like Neuralink, Boring Company.
Safe to say he's VERY diversified, has little public market risk relative to most given his many holdings in private markets, wealthiest institutions in world back Musk.
Musk in Govt. to help shape DJT's Govt. policy in tech, space, AI and autonomy. Can't put a price tag on living in 1600 and he'll continue on, DOGE or no DOGE roll, as DJT LOVES his Counsel regarding all these critical areas
Given above, Musk is not worried about margin calls, he's got far more equity than anyone on the planet, most of it extremely private and thus not subject to volatility.
bass4funk
No, because he said he would still be involved a few days a week.
TaiwanIsNotChina
The system works.