Washington — Tesla CEO Elon Musk has announced plans to scale back his involvement in the US government’s Department for Government Efficiency (Doge), following a major slump in Tesla’s quarterly performance.
The decision comes amid growing criticism that Musk’s political engagements — particularly his leadership of the Doge advisory body — have distracted him from Tesla’s core operations. The company’s Q1 report showed a 70% year-on-year drop in profits and a 20% decline in vehicle sales.
“Time allocation to Doge will drop significantly,” Musk said, clarifying that starting next month he will dedicate just one to two days per week to the role.
Created under President Trump’s administration, the Doge department has placed Musk at the heart of efforts to reduce federal spending. His presence in government has triggered boycotts and protests, particularly from critics of his political alignment.
Musk, who donated over $250 million to Trump’s re-election, said he would remain available “as long as the president finds it useful,” but confirmed he would be “allocating far more of my time to Tesla.”
Tesla’s Q1 results reflected global challenges, with trade policy uncertainty and supply chain tensions dampening investor confidence. Tariffs on Chinese-made parts — crucial to Tesla’s production — have compounded financial pressures, despite the company’s localized supply chains in North America and Europe.
Industry analysts note Tesla’s competitive advantage is eroding, and Musk must double down to address intensifying market competition and political risk. “Musk’s recalibration is long overdue,” said one investor.
