Tesla CEO Elon Musk announced on Tuesday that starting next month, he will “significantly reduce” his involvement in the Trump administration’s “Department of Government Efficiency” (DOGE) to focus more on the operations of his companies, especially Tesla which is facing sales and profit pressures.
In a conference call that day, Musk stated, “With DOGE’s core mission completed, I will refocus on Tesla.” He added that he would still dedicate about 40% of his time to DOGE to prevent waste and fraud in federal spending from resurfacing.
Following the financial report release, Tesla’s stock price surged by 5.5% in after-hours trading, indicating the market’s anticipation for Musk’s return to focus on Tesla. However, Tesla’s stock price has dropped by nearly 50% since its peak in December last year.
DOGE was established by President Trump through an executive order in January this year with the aim of reducing federal government spending waste. While Musk’s significant reduction plan received some support, it also sparked intense backlash. Multiple Tesla stores and charging stations across the United States have been protested against and vandalized, with incidents of arson leading to federal prosecutions.
During the conference, Musk bluntly stated that recent attacks on Tesla came from “interest groups that have benefited from waste and fraud”, attempting to undermine his and DOGE’s reform efforts. “This is a costly job, these people are trying to make me and Tesla back down,” he said.
Since the beginning of the year, Tesla’s stock price has dropped by over 37%. Musk also acknowledged that his involvement in government affairs indirectly affects investor confidence, stating, “Tesla’s stock price nearly halved; this is very significant.”
Tesla announced its first-quarter 2025 financial results, showing intensified operational pressure. Revenue was $19.34 billion, a 9.4% decrease year-on-year; net profit plummeted by 71% to $409 million. The decline in automotive revenue from $17.4 billion to $13.9 billion, a 20% decrease, was the primary reason for the downturn.
Although income from carbon credits increased to $595 million, it was insufficient to offset the overall performance decline. The company highlighted that global trade policy changes and worsening political environment are impacting the supply chain and market demand, adding short-term uncertainties.
With the backdrop of the U.S. imposing a 25% tariff on imported cars, Tesla has halted some imports of Chinese components and stopped new orders for Chinese Model S and X.
Tesla delivered 337,000 vehicles in the first quarter, a 13% decrease from the previous year, with Model 3 and Y accounting for over 90%. Analysts predict a consecutive second-year decrease in annual sales.
To boost growth, Tesla plans to introduce an affordable new car in the first half of 2025, utilizing the existing platform for mass production. Tesla’s VP of Engineering, Lars Moravy, stated, “While production speed may not be as fast as expected, there are no technical obstacles.”
Additionally, Tesla still plans to launch a robotaxi trial operation in Texas in June. Musk expects that by the second half of 2026, millions of Tesla vehicles will achieve full autonomous driving.
According to regulations, Musk can serve a maximum of 130 days as a special government employee. Democratic lawmakers have requested his resignation by the end of May, while Trump has suggested that Musk may formally leave in “a few months.”
Earlier this month, Trump expressed understanding and support for Musk’s impending departure from the Department of Government Efficiency. Trump stated in a media interview, “He has a big company to run… one day he has to go back.” He added, “I will try to keep him as much as possible.”
Vice President JD Vance told Fox News that after officially leaving the government, Musk will continue to serve as a “friend and advisor” to President Trump. He emphasized, “People are not aware of the enormity and lack of control in the bureaucracy. We have begun to weaken it, but there is still much work to be done.”
(This article referenced relevant reports from the English edition of “The Epoch Times” and Reuters)