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4w ago

Elon Musk to Scale Back Government Role, Reassumes Focus on Tesla

Musk announces reduced involvement with the Department of Government Efficiency as Tesla faces financial and reputational challenges.

The entrance to the now shuttered USAID office can be seen as black plastic covers a USAID sign at the Ronald Reagan Building and International Trade Center in Washington, DC on April 1.
Elon Musk shows off a shirt that says "DOGE" as he walks on the South Lawn of the white House after stepping off Marine One upon arrival to the White House in Washington, DC on March 9.
Protesters gather at a rally organized by the American Federation of Government Employees against the so-called Department of Government Efficiency purges and resignation offers made to the federal civilian workforce outside the US Capitol in Washington, DC, on February 11.
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Overview

  • Tesla's first-quarter profits dropped by 71%, prompting Musk to shift his focus back to the company starting in May.
  • Musk will cut his time at the Department of Government Efficiency to one or two days per week, though he plans to remain involved until the end of Trump's term.
  • Tesla's stock surged 20% following Musk's announcement, signaling investor optimism about his return to full-time leadership.
  • Musk's association with the Trump administration has led to significant brand damage for Tesla, with protests, boycotts, and declining sales in key markets like Europe.
  • Experts question the future of DOGE without Musk's daily involvement, with some predicting the initiative may falter without his advocacy.