Tesla CEO Reduces Time with Trump Administration as Company Faces Financial Struggles
Billionaire entrepreneur Elon Musk has announced plans to reduce his involvement with the Department of Government Efficiency (DOGE) in the Trump administration starting in May. The move comes after Tesla, the electric vehicle company Musk leads, reported a dramatic 71% drop in profit during the first quarter of 2025.
Musk, who has been serving as a special government employee for 130 days, was initially appointed by former U.S. President Donald Trump to lead DOGE, a department tasked with reducing waste and improving efficiency in federal government operations. However, the department’s controversial cost-cutting measures, which included large-scale job cuts, have sparked significant public backlash.
In a recent earnings call, Musk revealed that he would be scaling back his commitment to DOGE, limiting his time to one or two days per week. This decision comes amid growing concerns about Tesla’s financial health, as the company reported earnings of just $409 million in the January-March quarter of 2025, down sharply from $1.4 billion in the same period the previous year. Tesla’s stock has also taken a hit, with shares dropping 50% from their peak in December, shortly after Trump’s election victory.
Musk’s decision to reduce his time spent with DOGE reflects the increasing pressure Tesla faces to regain financial stability, while also addressing the criticism of DOGE’s controversial policies.
