Tesla CEO Elon Musk announced on Tuesday that he would significantly reduce the time he devotes to the Trump administration’s Department of Government Efficiency (DOGE) from next month, citing a renewed focus on his companies amid growing criticism and falling Tesla sales.
Musk’s involvement in DOGE—where he has led controversial efforts to cut federal jobs—has drawn intense political backlash, sparking persistent protests and vandalism at Tesla showrooms. Investors have also voiced concerns over Musk’s divided attention, with Tesla’s sales taking a sharp downturn in recent months.
Speaking during an earnings call, Musk said: “The large slog of work necessary to get the DOGE team in place and working with the government to get the financial house in order is mostly done.” However, he noted that he still plans to spend about 40% of his time on DOGE moving forward.
His remarks sent Tesla shares climbing, with the stock rising from a 4% after-hours gain to 5.5% during the call. Even so, Tesla shares have lost nearly half their value since peaking in December.
Tesla reported stronger-than-expected profitability in its core electric vehicle business on Tuesday and confirmed plans to launch a more affordable model. However, the company signalled it would revisit its growth outlook in three months due to increasing uncertainty caused by shifting global trade policies and volatile political sentiment.
“We find it difficult to measure the impacts of shifting global trade policy on the automotive and energy supply chains,” Tesla said in a statement. “Changing political sentiment could have a meaningful impact on demand for our products in the near-term.”
Adding to the challenges are rising tariff tensions. The US recently raised tariffs on Chinese imports to 145%, prompting China to retaliate. In response, Tesla has suspended new Model S and Model X orders in China and paused some imports of components from the country, Reuters reported.
Musk reiterated his support for lower tariffs and acknowledged the broader economic pressures affecting demand. “Macro demand for cars isn’t immune,” he said. “Economic uncertainty causes people to pause on making a major capital purchase like a car.”
Faridah Abdulkadiri
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