Elon Musk is under pressure from all sides as Tesla’s stock collapses and his once-close relationship with Donald Trump grows tense.
Elon Musk says he will cut back government role after Tesla faces sharp decline in profits
Tesla’s quarterly profits fell by £308 million over a three-month period.
As a result, Elon Musk was forced to reduce his involvement in Trump’s government advisory role.
The tech billionaire stated that, beginning in May, he would shift his focus back to Tesla.
He plans to prioritize company operations and work to rebuild investor confidence.
Musk said he will only spend “two days per week” on Department of Government Efficiency (DOGE) duties, if requested by Trump.
Consumer Protests and European Backlash Add to Tesla’s Struggles in Global Markets
Musk’s involvement with Trump has sparked backlash among consumers.
Protests and boycotts have been reported in multiple U.S. cities and overseas.
Tesla sales have dropped significantly, particularly in European markets.
Additionally, many environmentally conscious and progressive buyers have been put off by Musk’s support of far-right politicians.
Several investors claim Musk is too distracted by his political obligations and have publicly demanded a change in Tesla leadership.
What is DOGE and why was Elon Musk chosen to lead it?
DOGE stands for the Department of Government Efficiency, a Trump-era initiative aimed at cutting waste and downsizing the federal workforce.
Musk was appointed to head the department as an external figure.
He was brought in to offer strategic reform ideas directly to the White House. One of his first actions was implementing mass job cuts and workforce audits.
He also required federal employees to report weekly output or risk being dismissed.
Tesla’s Stock Plunges Over 40% as Investors Grow Nervous About Leadership and Market Conditions
Tesla, based in Austin, reported a 71% profit loss for the quarter, prompting a 40% plunge in Tesla’s stock value.
Bloomberg estimates Musk’s personal fortune has shrunk by over £102 billion in 2025, making it his steepest financial decline yet.
Musk admitted on Fox Business that he is running companies with “great difficulty,” though he remains confident Tesla will “be fine.”
Elon Musk and Donald Trump Reportedly Clash Over China Meeting Access
Tensions rose after Trump blocked Musk’s planned attendance at a classified meeting concerning U.S.-China relations and trade policies.
Additionally, reports claim Trump angrily ordered aides to stop Musk, allegedly saying, “What the fk is Elon doing there? Make sure he doesn’t go.”
While details remain unclear, the meeting coincided with heightened tariffs and a fragile trade relationship between the two superpowers.
Despite growing friction, Musk will reportedly remain in advisory role to Trump administration.
Though Trump stopped Musk from attending the China meeting, sources say the billionaire will continue to serve in an advisory capacity.
Musk’s formal role may decrease, but his influence remains embedded in Trump’s government reform initiatives for the time being.
Both figures have avoided direct public comments on the rift, leaving their political alliance uncertain but not fully severed.
Elon Musk cuts DOGE role to focus on Tesla after £308M profit loss
While, Tesla faces backlash over Musk’s politics and DOGE ties, hurting sales and investor trust.
Musk barred from Trump’s classified China meeting, raising questions about their relationship.
Despite tension, Musk plans to stay on in an advisory role to Trump’s administration.