Elon Musk stated on Tuesday that he would dial back his relationship with the Trump administration so that he can focus more on Tesla, his electric car company. Starting next month, Musk will reduce his connection to the U.S. government to one or two days a week.
The move comes after a rocky time for Tesla, which last week reported a sharp fall in profits in the first quarter. Meanwhile, Musk has been under intense scrutiny for his zealous cost-cutting efforts at the Department of Government Efficiency (DOGE), the federal program he was tasked with heading.
Musk's brief tenure in the Trump administration will probably conclude by late May, the end of his 130-day term as a special government appointee.
"I believe likely next month, in May, my time commitment to DOGE will decrease substantially," Musk said to shareholders during a conference call.
Tesla has been experiencing a number of challenges in the past few months. Its sales of electric vehicles fell, mainly due to the maturity of its model line and growing public criticism of Musk's close association with Trump. Tesla also encountered public demonstrations against the government policies.
Musk, who was heavily involved in shaping DOGE, claimed that much of the reorganization work was completed by the department. DOGE, under his command, instituted revolutionary changes across many federal agencies, a move that prompted both court battles and resistance from within the government.
Although not an elected politician, Musk was accorded wide discretion by President Trump to redesign parts of the federal government.
He still maintains responsibility for his actions.
Meanwhile, Tesla on Tuesday reported a 71% decline in quarterly profits, to $409 million or 12 cents a share. First-quarter revenue, including January through March, also declined 9% from the same quarter last year to $19.3 billion—below Wall Street expectations.
During the company's poor performance, there have been some investors who have complained about Musk's split attention. They argue that his focus on DOGE has come at Tesla's expense.
This is a huge step in the right direction. Investors were hoping to see him double down on Tesla," said Wedbush Securities' Dan Ives, reacting to Musk's action.
No longer the monarch of the EV world, Tesla now faces competition from a flood of newer electric vehicle manufacturers, adding more pressure on Musk to shift his attention to the future of the company.
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