In a dramatic turn of events, billionaire entrepreneur Elon Musk has announced plans to significantly reduce his involvement in President Donald Trump’s administration as Tesla grapples with a staggering 71% drop in first-quarter profits.
Speaking during a tense earnings call on Tuesday, Musk disclosed that he would cut down his time with the controversial Department of Government Efficiency (DOGE), a federal initiative he’s spearheading under Trump’s second-term government. “Probably in the next month, my time allocation to DOGE will drop significantly,” he stated, signaling a refocus on his embattled electric vehicle empire.
Tesla reported a sharp decline in net profits, plummeting to $409 million amid sagging vehicle sales and intensifying concerns over Musk’s dual roles in government and industry. Revenues fell by 9% to $19.3 billion, prompting the company to withdraw its ambitious 2025 guidance, citing a volatile global trade environment and weakening demand.
“Uncertainty in the automotive and energy markets continues to increase as rapidly evolving trade policy adversely impacts the global supply chain and cost structure of Tesla and our peers,” the company warned. “This dynamic, along with changing political sentiment, could have a meaningful impact on demand for our products in the near term.”
Industry analysts have attributed much of Tesla’s downturn to reputational damage, fueled by Musk’s high-profile alignment with Trump and his leadership of DOGE. The department has stirred public controversy after slashing thousands of federal jobs and gaining access to sensitive government databases — moves that have sparked fears over the future of key public services, including Social Security, disaster forecasting, and humanitarian aid.
Despite the turbulence, Musk remained bullish about Tesla’s long-term prospects. He confirmed that the company is on course to launch new, more affordable electric vehicles in the first half of 2025. Tesla’s highly anticipated Robotaxi, capable of full autonomous driving, is also set to debut in Texas by June.
Musk, who remains the world’s richest individual, has donated more than $270 million to Trump’s 2024 reelection campaign — a move that has intensified scrutiny over the blurred lines between his corporate leadership and political influence.
Still, he insisted that Tesla’s pioneering work in robotics, artificial intelligence, and autonomous transportation would continue to propel the company forward.
Yet, with profits plunging, investor confidence shaking, and public trust fraying, it remains to be seen whether Musk can successfully navigate the intersection of politics and business — or whether his White House ambitions will further drive Tesla off course.
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