Elon Musk says he will significantly reduce his role in DOGE U.S. government advisory work to refocus on Tesla, after the electric carmaker posted a sharp drop in profit and sales in early 2025.
Musk, who has led the Department for Government Efficiency (DOGE) since last year, said he would cut the time spent with the agency to one or two days per week starting next month. The move comes as investors and critics question whether Musk has diverted too much attention away from Tesla at a critical moment for the company, as reported by the BBC.
Tesla reported a 20% decline in vehicle deliveries for the first quarter compared to last year. Profits dropped more than 70%, prompting concern among shareholders. The company declined to offer a growth forecast, warning that “changing political sentiment” could dampen consumer demand moving forward.
Political involvement triggers backlash and boycotts
Musk, one of the highest-profile business figures in the world, has been a polarizing political player. His role in the Trump administration has drawn protests and sparked calls to boycott Tesla products in several countries. Critics argue his political involvement has hurt the brand and is a distraction from Tesla’s core operations.
Musk said he would not completely exit the advisory role, calling the work “critical,” despite the backlash. He said he would remain involved “as long as the president would like me to do so and as long as it’s useful.”
Musk’s term in government may also be nearing a legal limit. Temporary federal advisers are typically allowed to serve up to 130 days per year. According to the BBC, that threshold is expected to be met by late next month, depending on how service days are counted from President Donald Trump’s inauguration.
Musk, who contributed more than $250 million to Trump’s re-election efforts, has received vocal support from the president. “As long as I could keep him,” Trump said earlier this month.
Trade tensions and tariffs threaten supply chains
In a message to investors, Tesla warned that evolving global politics could disrupt supply chains and dampen sales. Though the company assembles its vehicles in the U.S., it relies on many parts from China. Rising tariffs introduced by the Trump administration have increased costs for manufacturers, including Tesla.
“This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near term,” the company said in its quarterly update.
On Tuesday, Musk said Tesla may be better positioned than others because of its localized production in North America, Europe, and China. Still, he admitted that tariffs remain a serious challenge for a company with narrow profit margins.
Tesla stock, which has lost about 37% of its value this year, rose more than 5% in after-hours trading following the earnings report.
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