Elon Musk is preparing to reduce his involvement with the White House’s Department of Government Efficiency (DOGE) as his term as a special government employee concludes on May 30. This decision comes in the wake of Tesla’s reported 71% drop in first-quarter profits, prompting Musk to reallocate his focus toward revitalizing the company’s performance.
Transitioning from Government Role
Musk’s tenure at DOGE, characterized by aggressive cost-cutting measures and attempts to dismantle agencies like USAID and the Consumer Financial Protection Bureau, has been met with both support and criticism. While his initiatives aimed to streamline government operations, they also sparked legal challenges and public backlash. As he steps back from his official duties, Musk plans to continue advising DOGE informally, dedicating one to two days per week as needed. White House Chief of Staff Susie Wiles confirmed that while Musk is no longer physically present, communication continues via phone, ensuring continuity in his advisory role.
Refocusing on Tesla Amid Financial Challenges
Tesla’s recent financial performance has raised concerns among investors, with a significant decline in profits and vehicle deliveries. Analysts attribute part of this downturn to Musk’s political involvement, suggesting that his divided focus may have impacted Tesla’s brand and operations.
In response, Musk has announced plans to dedicate more time to Tesla, emphasizing upcoming projects such as affordable AI-powered robots, fully autonomous vehicles, and the launch of a Robotaxi service. These initiatives aim to reinvigorate the company’s growth and restore investor confidence.
