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Elon Musk said Tuesday he will significantly reduce his time working with the Trump administration starting in May and redirect his focus back to Tesla, following intense investor pressure and a dismal first-quarter earnings report.
Musk’s remarks came during Tesla’s earnings call, where the company reported a 71% plunge in profits — down to $409 million from $1.39 billion a year prior — and acknowledged that trade policy uncertainty and Musk’s political entanglements have hurt business.
“Starting probably next month, May, my time obligation to DOGE will drop significantly,” Musk said, referring to his role in the Department of Government Efficiency, a Trump-era initiative aimed at cutting federal spending.
He added that he plans to spend only “a day or two per week” on government work going forward, as most of his contributions to DOGE are now complete.
Tesla Hit by Politics, Tariffs, and Changing Market Sentiment
Tesla’s written earnings report emphasized the impact of a volatile political climate, citing “changing political sentiment,” “uncertainty in the automotive and energy markets,” and the Trump administration’s tariff policies as major challenges. Musk confirmed that he had unsuccessfully tried to persuade Trump to walk back tariff hikes.
The company’s shares rose about 4% in after-hours trading, despite Tesla having lost roughly 50% of its value since its December 2024 peak. Investors have expressed concern over Musk’s split focus, especially as Tesla becomes a lightning rod in the current political climate.
A CNBC All-America Economic Survey released Tuesday showed negative public sentiment toward both Tesla and Musk: 47% held unfavorable views of the company, while 50% viewed Musk negatively.
Pivoting to Robots and Robotaxis
Despite disappointing earnings, Musk reaffirmed Tesla’s pivot beyond electric vehicles. The company plans to launch robotaxi services in Austin, Texas, in June, directly competing with Waymo, which already operates in the city via Uber.
Musk also hyped the company’s efforts to build humanoid robots, leaning into Tesla’s growing ambition in real-world AI and autonomous technology.
“We remain committed to expanding our business model to include delivering autonomous robots… for customers and for use in our factories,” Tesla stated.
Still, investors remain skeptical, especially as the company withheld performance guidance for the remainder of 2025, citing tariff-related cost unpredictability and volatile global demand.
Musk’s Political Role Nears Legal Limit
Musk’s time in the White House may soon be limited by law. As a “special government employee,” federal rules cap his service at 130 days in a 365-day period, meaning his current role could expire as early as late May.
His involvement in politics has sparked protests, vandalism, and declining consumer interest — particularly in international markets like China, where retaliatory tariffs have made Tesla a target. Musk acknowledged these complications, saying he understands investor concerns about his dual commitments.
As Musk winds down his government role, Tesla now faces the challenge of reassuring investors, navigating a tough global trade environment, and delivering on big promises in autonomy and robotics — all while repairing its public image.
