Elon Musk plans to cut back work with Trump’s DOGE starting in May after Tesla’s profit drops 71% | World News
Billionaire entrepreneur Elon Musk, who had joined US President Donald Trump’s government as his advisor and leading the Department of Government Efficiency (DOGE), has announced that he will cut back his work in the Trump adminration to a day or two per week starting next month.
The 130 days mandate of Musk to serve as a special government employee in the Trump adminration is also set to expire in May. The severe cost cutting tactics which Musk brought via DOGE to shrink the federal workforce sparked public backlash and investor concern.
Leading the cost cutting initiative of DOGE, the Trump adminration has cut tens of thousands of federal jobs in the name of reducing fraud, waste and abuse. But the newly formed department has also faced severe backlash and lawsuits, with critics claiming that DOGE accessed voters’ private data and discontinued programs which were critical to Americans.
Q1 2025 Earnings Call https://t.co/wCEPPfA1s7
— Tesla (@Tesla) April 22, 2025
During a conference call on Tuesday with investors of electric car company Tesla, its CEO Elon Musk said “I think starting probably next month, in May, my time allocation to DOGE will drop significantly,” Reuters reported. Musk said he would continue to spend “a day or two per week” on Washington matters, New York Times reported.
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This development comes after Tesla reported a 71% drop in profit in the first three months of 2025. Tesla, in the earnings call, revealed that it earned $409 million in January-March quarter of 2025, down from $1.4 billion in the first quarter of 2024.
Tesla’s sales dropped in the first quarter of 2025 after it apparently became a symbol of the Trump adminration and has faced protests and sloganeering due to Musk’s role at DOGE.
The shares of Tesla have also plunged 50% from its recent high in December, when Trump’s election victory signalled optimism that Musk’s advisory role in government would help the EV maker’s bottom line.
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