Prioritizing the company amid a 40% stock plunge, Elon Musk will scale back his government efficiency work to refocus on Tesla.
While the Department of Government Efficiency (DOGE) has reportedly saved taxpayers $160 billion by slashing bloated bureaucracy, Musk recognizes his main responsibility lies with Tesla’s shareholders.
During Tesla’s earnings call, Musk announced his time commitment to DOGE will “drop significantly” starting in May.
This strategic shift comes as Tesla faces mounting challenges, including a 20% decline in automotive revenue and a concerning 71% drop in net income for the first quarter.
Musk clarified that while he is reducing his DOGE involvement, he remains committed to preventing government waste from returning.
“I’ll have to continue doing it for, I think, for the remainder of the president’s term, just to make sure that the waste and fraud we stopped won’t come roaring back,” Musk stated.
Under Musk’s guidance, DOGE has reportedly made significant strides in reducing government bloat by targeting wasteful spending and bureaucratic inefficiency.
The efficiency commission has implemented cuts across multiple federal agencies, including the IRS and the Department of Education.
It recently oversaw the integration of USAID into the Department of State, an effort to streamline operations and reduce the taxpayer burden.
Elon Musk said that he would spend less time working at DOGE after Tesla profits plunged 71%. pic.twitter.com/0aiKQwQM2b
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Tesla’s struggles are not just financial. The company’s share of the U.S. electric vehicle market has fallen below 50% as legacy automakers and Chinese competitors flood the market.
Used Tesla prices have decreased by 10.1% over the past year, further complicating the company’s financial outlook.
These challenges demand Musk’s renewed focus on Tesla’s core business.
Musk’s decision to scale back government involvement comes with the added benefit of silencing critics who have raised concerns about conflicts of interest.
This strategic move allows him to focus on Tesla while continuing to advise President Donald Trump on efficiency measures when requested.
During the earnings call, Musk addressed the demonstrations against Tesla, stating, “The protests that you’ll see out there, they’re very organized.”
He suggested that these acts may be coordinated and potentially funded through questionable means, highlighting the political environment in which Tesla now navigates.
Despite current challenges, Musk remains optimistic about Tesla’s future, particularly regarding its AI technology and robotaxi potential.
“I’m a little concerned that on the leaderboard, ranked two through 10 will be Chinese companies. But I’m not worried that rank one will be Tesla,” Musk confidently asserted.
