In a head-turning development, Elon Musk has dropped a massive bombshell that stunned supporters and critics alike.
Specifically, the tech mogul is scaling back his involvement in the Department of Government Efficiency (DOGE) to focus on turning around Tesla’s plummeting stock value.
Although the billionaire will reduce his time fighting government waste starting in May, he will still support the administration’s efforts to streamline bloated federal agencies.
Musk announced he would significantly decrease his DOGE commitments beginning next month during Tesla’s earnings call.
This change comes as Tesla faces serious business challenges. The company’s stock has dropped more than 40% this year alone, wiping roughly $600 billion from its market capitalization.
Despite scaling back his involvement, Musk remains committed to supporting President Donald Trump’s efficiency agenda.
The DOGE initiative has already claimed to have saved American taxpayers around $160 billion by cutting wasteful spending and reducing bureaucratic bloat at agencies like the IRS and the Department of Education.
The Tesla CEO emphasized that even at a reduced level, his continued involvement is essential to prevent government waste from returning.
“I’ll have to continue doing it for, I think, for the remainder of the president’s term, just to make sure that the waste and fraud we stopped won’t come roaring back,” Musk said.
Tesla’s financial troubles are substantial, with the company reporting a 20% decline in automotive revenue and a staggering 71% drop in net income for the first quarter.
This downturn comes as Tesla’s share of the U.S. electric vehicle market has fallen below 50%, with competitors from both traditional automakers and Chinese companies gaining ground.
Musk has suggested that the demonstrations against Tesla may be contributing to the company’s struggles.
“The protests that you’ll see out there, they’re very organized,” Musk noted, implying potential coordination by political opponents upset with his support for President Trump.
The DOGE team has made significant strides in reducing government size, particularly targeting oversight agencies such as the SEC, FAA, and NHTSA.
The Trump administration also recently announced the integration of USAID into the State Department, a move aimed at streamlining foreign aid spending.
Musk’s designation as a “special government employee” has allowed him to serve in DOGE with fewer conflict-of-interest requirements than traditional appointees.
The designation has also given him greater flexibility to implement meaningful reforms without excessive bureaucratic constraints.
While his government role will be reduced, Musk remains optimistic about Tesla’s future, especially regarding its development of AI technology.
