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Elon Musk to Scale Back Government Role as Tesla Grapples with Financial and Reputational Challenges

Musk plans to reduce his involvement with the Department of Government Efficiency to focus on Tesla following a steep profit decline, protests, and investor concerns.

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Nearly 50 people gathered on the sidewalk along Tennessee Street in front of the Tesla dealership as part of the “Tallahassee Tesla Takedown” protest on Thursday, April 10, 2025.
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HAWTHORNE, CALIFORNIA - MARCH 01: People protest outside the former SpaceX Headquarters to denounce the chaos caused by massive government slashing efforts by SpaceX CEO Elon Musk, working as a "special government employee" of the Trump administration, and his Department of Government Efficiency (DOGE) on March 1, 2025 in Hawthorne, California. Musk moved SpaceX headquarters from Hawthorne to its new location at Boca Chica Beach, near Brownsville, Texas, in 2024. (Photo by David McNew/Getty Images)

Overview

  • Elon Musk announced he will limit his work with the Department of Government Efficiency (DOGE) to one or two days per week starting in May to prioritize Tesla's recovery.
  • Tesla reported a 71% drop in first-quarter profits, a 9% decline in revenue, and a 9% fall in vehicle sales, prompting the company to withdraw its 2025 financial guidance.
  • Protests and vandalism targeting Tesla properties have escalated, with the FBI investigating incidents linked to backlash against Musk's political involvement.
  • Tesla's stock rose 9% after Musk's announcement, reflecting investor optimism about his renewed focus on the company despite ongoing brand and market challenges.
  • Trade policy uncertainties, including new tariffs, continue to pressure Tesla's supply chain and margins, complicating its outlook for the rest of 2025.