In a move that’s sending ripples through both Wall Street and Washington, Elon Musk has announced he’s dialing down his involvement with the Department of Government Efficiency (DOGE)—a position tied to his advisory role under President Donald Trump.
The billionaire tech mogul, who has long juggled his role as Tesla CEO with various high-profile political entanglements, told investors this week that he’s refocusing his energy on Tesla amid a year of plummeting stock prices and mounting criticism from shareholders.
“Starting next month, I’ll significantly reduce my time with DOGE,” Musk said during a call with Tesla investors. “I’ll still spend a day or two a week on government matters—as long as it’s useful and the President wants me there—but my priority is now clearly Tesla.”
From the Hill to the Assembly Line
Musk’s pivot comes at a critical moment for Tesla. The company’s stock has nosedived over 40% this year, shaken by disappointing sales figures and backlash over Musk’s increasingly political persona. Many consumers—and investors—are pushing back against Musk’s outspoken support for far-right leaders in the U.S. and Europe, a move that appears to be damaging Tesla’s brand appeal, especially in progressive markets.
Read Also: Musk’s £1.56 Trillion Promise Falls Flat: DOGE Delivers Just 7.5% Of Target Savings
Investors to Musk: Pick a Lane
Frustration has been bubbling for months. Critics argue Musk has been too distracted by his political ventures to focus on the company that made him a household name. Some investors have even gone so far as to suggest he step down as CEO if he refuses to step away from Washington.
And while Musk insists he can balance both worlds, the numbers tell a more complicated story.
“It’s not shocking given the drop in deliveries,” said Morningstar analyst Seth Goldstein. “But it’s still encouraging to see the company generate strong cash flow.”
Indeed, there is a silver lining: Tesla pulled in $2.2 billion in operating cash this past quarter—up from just $242 million a year ago.
What’s Next for Tesla?
Despite the turbulence, Musk is still charging forward with ambitious plans. Tesla is expected to roll out a more affordable version of the Model Y SUV later this year, a move that could reignite interest among budget-conscious consumers.
The company is also aiming to launch a robotaxi service in Austin, Texas as soon as June—betting big on the promise of fully autonomous ride-hailing technology.
Still, challenges remain. Tesla’s gross margins—a key indicator of profitability—slipped again, down to 16.3% from 17.4%. That drop underscores the pressure the company is under to cut costs while still innovating in a fiercely competitive EV market.
The Bottom Line
Musk stepping back from DOGE might come as a relief to investors who want him laser-focused on Tesla’s future. But it also highlights the delicate balancing act he’s trying to pull off—part CEO, part political power player, and always a lightning rod for controversy.
As Tesla pushes forward with robotaxis and new EV models, all eyes will be on whether Musk’s renewed focus on the company can turn its fortunes around—or if this is just another headline in a year full of them.
