Musk Announces Cutback in Government Role Amid Tesla Profit Drop

Tesla CEO Elon Musk has declared his intention to significantly reduce his role in the newly formed advisory body, the Department for Government Efficiency (Doge), following a staggering drop in the company's profits and sales during the year's first quarter. His announcement comes after Tesla reported a 20% decrease in car sales compared to the previous year, alongside a 70% reduction in profits. Musk indicated he would scale back to dedicating just one or two days a week to Doge starting next month, citing the need to refocus on Tesla amidst increasing scrutiny over his political involvement. Accusations regarding his divided attention have prompted protests against Tesla worldwide.

While Musk expressed his commitment to continue working with the Trump administration, he noted that he would prioritize his responsibilities at Tesla. Following a tumultuous quarter, shares in Tesla dropped about 37% throughout the year, but there was a slight recovery with a 5% rise in after-hours trading after the financial results were released. The company's challenges are compounded by changes in political sentiment and trade tariffs affecting supply chains, particularly concerning parts sourced from China. Musk has maintained that the impact of tariffs might not be as severe for Tesla due to its local supply chains, but he acknowledged the ongoing risks posed by fluctuating trade policies and intense market competition. The reduction in profits has raised concerns among investors, leading to expectations of a precarious future for the company as it faces numerous challenges.