In response to mounting investor pressure and disappointing financial results, Tesla CEO Elon Musk announced plans to significantly reduce his involvement with the U.S. government’s Department of Government Efficiency (DOGE) starting in May. This decision comes as Tesla reported a 71% drop in net profit and a 9% decline in revenue for the first quarter of 2025, alongside a more than 40% decrease in stock value since the beginning of the year.

Musk’s association with DOGE, a Trump administration initiative aimed at reducing federal spending, has been linked to negative perceptions of Tesla, particularly among environmentally conscious consumers. The company’s alignment with controversial political activities has led to protests, vandalism at Tesla showrooms, and a decline in vehicle sales.

During a recent earnings call, Musk acknowledged the need to refocus on Tesla, stating that his time commitment to DOGE would decrease to one or two days per week. He emphasized that the initial phase of establishing the DOGE team was complete, allowing him to dedicate more attention to Tesla’s operations.

Analysts have welcomed Musk’s decision, viewing it as a positive step toward stabilizing Tesla’s leadership and addressing investor concerns. However, they caution that rebuilding the company’s brand and regaining consumer trust will require sustained effort, especially as Tesla faces increasing competition in the electric vehicle market .​