Tesla CEO Elon Musk has announced plans to reduce his involvement with the so-called “department of government efficiency” (DOGE )starting in May. The move comes as Tesla posted a steep decline in both profits and revenue for the first quarter of 2025, amid growing backlash over Musk’s role in the White House.
Speaking on an investor call, Musk claimed the work required to “get the government’s financial house in order is mostly done.”
“Starting probably next month, May, my time allocation to DOGE will drop significantly,” he said, using the internal nickname for the government department.
However, he indicated he would continue to dedicate one to two days a week to what he called “critical work” at DOGE “for as long as the president would like me to do so and as long as it is useful.”
Musk is expected to officially step down from his post at Doge on 30 May, in line with the 130-day limit imposed on his tenure as a special government employee.
Tesla reported a 9% year-on-year drop in revenue for the first quarter of 2025, bringing in $19.3bn—well below Wall Street forecasts of $21.45bn. Earnings per share fell to 27 cents, missing expectations of 43 cents. Net profits plunged 71% to $409m, compared with $1.39bn during the same period last year.
The electric carmaker delivered just 3,36,681 vehicles during the quarter—a 13% decline and its weakest performance since 2022.
Despite the disappointing results, Musk struck an optimistic tone. “The future for Tesla is better than ever,” he said. “We’re focused on delivering sustainable abundance with affordable, AI-powered robots. This is the happiest future you can imagine—abundance for all, in a way that’s good for the environment.”
That vision includes Tesla’s long-promised fully self-driving cars, which Musk said could be operating in some US cities “by the end of the year”. He reiterated his belief that “the acid test” of autonomy—being able to fall asleep and wake up at your destination—will be achieved within that timeframe.
In addition, Tesla plans to launch its long-awaited Robotaxi service in June. Musk projected that “millions of Teslas” could be operating autonomously in the second half of 2026.
Despite Tesla missing expectations, some analysts interpreted the results more positively given the dire forecasts heading into the earnings release.
“Against catastrophic expectations—declining sales, collapsing margins—the less-than-disastrous numbers were welcomed by investors,” said a senior analyst. “If this is Tesla at its worst, there’s clear potential upside when products like the cheaper model and Robotaxi finally arrive.”
Still, many analysts attribute Tesla’s troubles to a broader branding crisis triggered by Musk’s White House role. The company is at a crossroads, and some say a full return by Musk to Tesla is essential.
In addition to falling sales and a 50% decline in share value, existing Tesla owners are increasingly trying to offload their vehicles. Vandalism targeting Teslas has surged, and the Vancouver International Auto Show dropped the brand from its March lineup. Tesla also issued a recall for nearly all sold Cybertrucks—some 46,000 vehicles.
Musk has blamed broader economic uncertainty rather than his own political involvement.
