Elon Musk, Tesla CEO, has pledged to significantly reduce his role in DOGE, focusing more on Tesla.
Elon Musk, Tesla CEO, has pledged to significantly reduce his role in the (DOGE), focusing more on Tesla.
Elon Musk’s shift in focus: Reduced role in DOGE after declining Tesla Profits
Musk recently announced he would reduce his role in the Department of Government Efficiency (DOGE).
Musk, who heads the Department of Government Efficiency under President Donald Trump, revealed he would allocate only one or two days per week to DOGE from May onwards.
His decision was reported after Tesla faced significant financial setbacks, including a 71% profit drop.
Tesla faces major setbacks as Musk’s political involvement draws criticism
Tesla’s financial struggles have worsened as Musk’s political commitments have divided his attention.
The company reported a 20% drop in car sales.
Additionally, Tesla’s profits plunged by more than 70%. One report even claimed that nearly $1 billion in savings “disappeared” overnight.
It prompted concerns among investors about Musk’s ability to lead effectively while maintaining his political role.
Musk, however, insists that he will still serve in DOGE as long as President Trump requests his participation. However, his focus will shift back to Tesla.
Musk’s leadership in DOGE seriously impacts Tesla’s reputation
Musk’s leadership in DOGE involved overseeing government spending cuts and cost-saving initiatives.
These reportedly saved the government $65 billion through asset sales and program changes.
However, Musk’s time commitment to DOGE has become a source of tension.
Critics point out that Tesla’s performance has been affected by his divided attention.
The company’s stock has dropped nearly 50% since its peak in December, wiping out over $500 billion in value.
Many believe negative public perception is driving the decline, with doubts over how to restore the brand’s appeal.
Currently, Tesla trades at 89 times earnings—far above rivals like Ford, GM, and other big tech names—raising concerns about its high valuation.
Previously, Ross Gerber, an early Tesla investor, publicly criticized Musk’s dual commitments.
He called for Musk’s departure as Tesla CEO amid declining sales.
Gerber also argued that his political involvement was damaging Tesla’s reputation and sales.
Additionally, he urged that it’s time for someone else to run Tesla.
Speaking on Sky News, Gerber said: “The company’s reputation has just been destroyed by Elon Musk.
“Sales are plummeting so, yeah, it’s a crisis. You literally can’t sell the best product in the market place because the CEO is so divisive.
“It’s time for somebody to run Tesla. The business has been neglected for too long.”
Musk responds to concerns by reducing DOGE role to focus on Tesla’s future
Musk acknowledged the criticisms and confirmed his reduced involvement in DOGE.
He emphasized his dedication to Tesla, especially in light of the company’s struggles.
Despite his reduced role, Musk insisted that he would remain involved in government affairs, providing his expertise only when needed by President Trump.
In shory, Tesla’s stock price has dropped by over 50% since December,. This led to heightened concerns about the company’s future under Musk’s leadership.