Tesla Inc.’s CEO Elon Musk has announced that he is going to dedicate much more of his time to overseeing the electric vehicle manufacturer in light of the implementation of a cost-cutting team. In an investor conference call on Tuesday, Musk stated that he will be scaling back his role with President Donald Trump’s Department of Government Efficiency (DOGE) to one or two days a week effective May. He expressed that most of the significant work in setting up the DOGE team and addressing the government’s financial situation has been completed.
Musk’s declaration appeared to reassure investors, as Tesla Inc.’s stock value, which had decreased by over 40% since the start of the year, saw a 4.6% increase in after-hours trading. This follows a reported 71% drop in net profits for Tesla Inc. in Q1 compared to the previous year, with revenues of $409m as opposed to $1.39bn in the corresponding period in the prior year. Tesla’s global vehicle sales also faced a 13% decline during this time, partly due to a consumer backlash over Musk’s association with the Trump administration.
The company, which fabricates its vehicles in the US, in Texas and California, yet relies on parts from Mexico, also faces the negative impacts of the 25% tariff imposed by Trump on auto imports. Protest actions targeting Tesla vehicles, dealerships, and charging stations have occurred in numerous countries as a reaction to the tech billionaire’s involvement with the Trump administration.
During the call, Musk defended his work with DOGE, asserting that his involvement is geared towards combating fraud, reducing waste, and retaining America’s prosperity. Musk stated, “If the ship of America goes down, we all go down with it, including Tesla and everyone else.”
Source: https://www.aljazeera.com/economy/2025/4/23/musk-to-spend-more-time-running-tesla-after-profit-plunge?traffic_source=rss
