US: Elon Musk, CEO of Tesla and one of the world’s most prominent business leaders, has announced a significant reduction in his involvement with the US government, following a steep drop in Tesla’s sales and profits in the first quarter of 2025.
Musk, who has been at the helm of the Department for Government Efficiency (Doge) – an advisory body created under the Trump administration said his time commitment to the role would “drop significantly” starting next month.
The announcement follows Tesla’s disclosure of a 20 percent year-on-year decline in car sales and a more than 70 percent plunge in quarterly profits.
Musk, who has been criticized for diverting attention from Tesla to political activities, confirmed he would now spend only one to two days a week on Doge duties.
Elon Musk acknowledged the growing unrest among Tesla customers and shareholders, many of whom have voiced discontent over his political affiliations and public statements. His participation in the Trump administration has sparked widespread protests and boycotts against Tesla vehicles in both domestic and international markets.
Temporary political appointees like Musk are limited to 130 working days per year. With that cap nearing, Musk’s decision is also seen as a pre-emptive response to regulatory constraints.
President Donald Trump, who recently stated he would retain Musk “as long as I could keep him,” has leaned heavily on the tech entrepreneur’s input on federal spending and employment reforms.
Musk has donated over $250 million to Trump’s re-election campaign, underlining his deep political entanglement.
The backdrop to Musk’s shift in priorities is Tesla’s worsening financial outlook. The company cited changing political sentiment and evolving trade policies as key risks to its business.
The Trump administration’s new tariffs on China, where Tesla sources many of its parts, are exerting upward pressure on production costs.
