Elon Musk announces plans to scale back his government role and refocus on Tesla amid plummeting profits and growing protests against his political involvement.

At a Glance

• Musk will reduce his Department of Government Efficiency (DOGE) involvement starting next month to focus more on Tesla
• Tesla experienced a 71% profit drop in Q1 2025, attributed partly to political backlash and Musk’s divided attention
• Vehicles owned by Tesla customers have faced vandalism including slashed tires and broken windows due to Musk’s government role
• President Trump expressed desire for Musk to remain with DOGE while acknowledging his business responsibilities
• Musk’s special government employee status, which limits his work to 130 days annually, expires at the end of May

Musk Shifts Focus as Tesla Faces Financial Pressure

Elon Musk has announced plans to significantly reduce his involvement with the Department of Government Efficiency (DOGE) and return his primary focus to Tesla starting next month. During Tesla’s recent earnings call, Musk made his intentions clear amid mounting pressure from investors concerned about the company’s financial performance.

The electric vehicle manufacturer reported a staggering 71% drop in profit compared to the first quarter of last year, creating what some Wall Street analysts have described as a “code red” situation for the company if Musk doesn’t reduce his government work.

“Starting next month, I’ll be allocating far more of my time to Tesla, and now that the major work of establishing the Department of Government Efficiency is done,” Musk said during Tesla’s earnings call.

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— techAU (@techAU) April 18, 2025

Political Backlash and Corporate Vandalism

Musk’s involvement with the Trump administration has sparked global protests and resulted in direct attacks against Tesla vehicles and property. Owners have reported incidents of slashed tires, broken windows, and anti-Musk graffiti on their vehicles. These incidents appear to be politically motivated, targeting Tesla specifically because of Musk’s role in the administration. The political backlash has not only affected Tesla’s public image but has potentially contributed to declining sales and investor confidence in the company’s direction.

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— TESLARATI (@Teslarati) February 24, 2025

Trump Administration Response

President Trump has publicly acknowledged Musk’s difficult position but expressed his desire for the tech billionaire to remain involved with DOGE for as long as possible. While understanding the pressure Musk faces from Tesla stakeholders, Trump values Musk’s contributions to government efficiency initiatives. The administration has recognized that Musk must balance his corporate responsibilities with his commitment to governmental reform, creating a delicate situation for both parties as they navigate the transition.

“We’re in no rush, but there will be a point in time in which Elon’s going to have to leave,” Trump stated regarding Musk’s eventual departure from DOGE.

Legal Limitations and Future Plans

Musk’s special government employee status, which expires at the end of May, has limited his work to 130 days per year. After the expiration of this status, Musk plans to reduce his DOGE involvement to just “a day or two” per week, enabling him to dedicate more time to addressing Tesla’s challenges. This transition comes as a Washington Post report suggests Musk’s political influence “appears to be waning,” further prompting speculation about his potential exit from government duties.

Despite the reduction in his DOGE responsibilities, Musk has indicated he may continue some level of involvement “for as long as the President would like me to do so, and as long as it is useful.” This statement suggests a flexible approach to his government role while prioritizing Tesla’s pressing needs. The company must now navigate significant economic challenges while rebuilding investor confidence and addressing the political backlash that has affected its operations and public perception.

Tesla’s Path Forward

As Musk refocuses on Tesla, the company faces multiple challenges beyond the political controversy. Increased competition in the electric vehicle market, potential tariff issues, and the need to advance autonomous driving technology all require dedicated leadership attention. Investors hope Musk’s renewed focus will lead to better operational decisions and strategic direction, potentially reversing the company’s recent financial difficulties and charting a course toward sustainable growth in an increasingly competitive market landscape.

The coming months will be critical for Tesla as Musk attempts to balance his remaining government commitments with the urgent needs of his flagship company. Shareholders will be watching closely to see if his reduced DOGE involvement translates into improved performance metrics and a return to Tesla’s innovative roots in the electric vehicle and clean energy sectors. For many conservative supporters of both Musk and Trump, the situation represents the complex reality of balancing private sector excellence with public service contributions.