Elon Musk To Cut Back His Hours At DOGE After Tesla's Net Income Falls 71 Per Cent In Q1
The company reported a 20 per cent decline in automotive revenue compared to the previous year, along with a steep 71 per cent drop in net income for the first quarter.
During Tesla’s earnings call on Tuesday, CEO Elon Musk announced that he would be reducing his involvement with President Donald Trump’s Department of Government Efficiency (DOGE) beginning in May.
Musk said his commitment to helping the administration root out waste and fraud remains intact, but added that the amount of time he devotes to it will drop “significantly", reported CNBC.
The Tesla head still plans to contribute “a day or two per week” on federal matters “for as long as the president would like me to do so.”
Musk’s statement comes at a time when Tesla’s performance is under pressure. The company reported a 20 per cent decline in automotive revenue compared to the previous year, along with a steep 71 per cent drop in net income for the first quarter. Tesla’s stock has plummeted over 40 per cent this year alone.
While the electric vehicle maker has faced ongoing competition from Chinese automakers and a dated lineup, additional blows have come from public protests and reputational damage linked to Musk’s political associations, including his backing of Germany’s far-right AfD party and his prominent support for Trump.
DOGE’s Cuts and Controversies Mount
Musk, who reportedly spent close to $300 million during the 2024 election cycle to help Trump return to office, launched DOGE with the goal of overhauling and downsizing federal agencies.
According to the DOGE website, updated as recently as Sunday, these efforts have purportedly resulted in $160 billion in savings. However, not all of those claims have held up under scrutiny—some of the largest figures have since been removed, and critics have questioned the accuracy of the estimates.
At the same time, Tesla’s own market capitalisation has taken a severe hit, losing around $600 billion during this same period. Musk's role in DOGE has stirred further controversy due to its reach into agencies with oversight over his own companies, such as the Securities and Exchange Commission, the Federal Aviation Administration, and the National Highway Traffic Safety Administration.
DOGE-led staff reductions have touched nearly every corner of the federal government, from the IRS and National Park Service to the departments of Agriculture, Education, Energy, and Veterans Affairs.
White House Designation
Musk is officially classified as a “special government employee,” a designation used for individuals working fewer than 130 days in a calendar year, according to the Department of Justice. The Trump administration is expected to reach that threshold by the end of May. The classification also carries looser requirements around ethics and conflict-of-interest disclosures, raising questions given Musk’s expansive business interests.
Despite the mounting scrutiny, Musk remains steadfast in his mission. “The protests that you’ll see out there, they’re very organised,” he said during Tuesday’s call, going further to allege—without evidence—that some participants might be motivated by “fraudulent money” or as “recipients of wasteful largesse.”
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