Mathias Busekist
Tech billionaire Elon Musk is taking a step back.
Elon Musk announced Tuesday that he will scale back his involvement with the Trump administration to focus more on Tesla, following a sharp decline in the company’s first-quarter earnings and growing investor frustration over his political work.
Speaking during Tesla’s earnings call, Musk said he would significantly reduce his time commitment to the Department of Government Efficiency (DOGE) starting in May. “I’ll be allocating far more of my time to Tesla now that the major work of establishing DOGE is done,” he said.
Tesla reported a 71% drop in profits, down to $409 million from $1.39 billion a year ago. The company cited political instability, trade policy uncertainty, and production delays as key challenges. Despite the drop, shares rose 4% in after-hours trading, signaling investor optimism over Musk’s renewed focus on Tesla.
Musk has faced backlash for his close ties to the Trump administration, with Tesla becoming a target for protests and criticism. He acknowledged the political involvement may have hurt the company’s stock.
Looking ahead, Musk reaffirmed Tesla’s pivot toward robotaxis and humanoid robots, confirming plans to launch robotaxi services in Austin this June, in direct competition with Waymo.
Tesla warned of continued headwinds due to shifting market conditions and tariffs, which could impact demand and prevent it from offering full-year guidance.
“We remain committed to expanding our business model… as we navigate these headwinds,” Tesla said in a statement.
The White House has not commented on Musk’s announcement.