Elon Musk Reduces Role at Government Efficiency Department Amid Tesla Struggles

News Summary

Elon Musk has announced he will reduce his involvement at the Department of Government Efficiency, focusing only a couple of days a week on the role. This decision comes as Tesla faces significant financial challenges, reporting a 9% drop in revenue and a 71% fall in net income. Factors behind the decline include political controversies and competition from rivals. As Tesla aims to innovate with affordable models and humanoid robots, the market remains skeptical amid ongoing supply chain issues and increased competition.

Elon Musk to Scale Back Involvement at Government Efficiency Department as Tesla Struggles

In a surprising move that has both financial experts and fans buzzing, Elon Musk recently announced he will be stepping back from his role at the Department of Government Efficiency (DOGE). Starting in May, Musk plans to dedicate just one or two days a week to the department, focusing on eliminating “waste and fraud,” which he considers highly important work.

Tesla Takes a Hit in Earnings

This shift comes in the wake of some troubling news for Tesla. The company’s latest quarterly earnings report shows it fell **far short of expectations**, with both profits and revenue experiencing notable drops. To put it in perspective, Tesla recorded a **9% decline in total revenue** and an alarming **71% fall in net income** compared to the same period last year.

Automotive revenue bore the brunt of the downturn, dropping a substantial **20%**—the largest sales slip in Tesla’s history. To add salt to the wound, the company delivered **50,000 fewer vehicles year-on-year**, marking its **lowest sales numbers in nearly three years**. This follows a period of previously impressive growth rates that soared between 20% and 100% each quarter.

External Factors Influencing Decline

Several factors are at play in this downturn, with analysts suggesting that Musk’s bold political moves may have played a significant role. Some reports indicate that his political activities, particularly his support for far-right parties in Europe, have sparked **public protests and even vandalism** at various Tesla facilities. This unrest seems to have impacted the company’s reputation and sales, particularly in Europe, where sales have sharply declined.

Moreover, though Musk insists that Tesla remains **less impacted by tariffs** than its competitors—thanks to American production—he has acknowledged that the company still imports parts from China. These supply routes are at risk, especially after Trump imposed **new tariffs on auto imports** earlier this month, raising concerns about how this will affect Tesla’s operational costs and supply chain.

Looking Ahead

However, Tesla is not the only player in the game. The electric vehicle market is heating up, with rivals, particularly **Chinese manufacturers like BYD**, outperforming Tesla in sales for several quarters. Increased competition is putting pressure on Musk and his team to innovate and deliver on their promises.

Embracing AI and Robotics

Market Reactions and Future Prospects

In the vibrant, ever-evolving world of electric vehicles, only time will tell how Musk and his Tesla team navigate these turbulent waters. For now, all eyes are on the company as it attempts to reclaim its footing in an increasingly competitive marketplace.

Deeper Dive: News & Info About This Topic

• CNN: Tesla Reports Disappointing Drop in Revenue and Profits
• Wikipedia: Tesla, Inc.
• BBC: Tesla’s Financial Challenges
• Google Search: Tesla struggles 2025
• Bloomberg: Tesla First Quarter Earnings
• Encyclopedia Britannica: Tesla, Inc.
• CNBC: Tesla’s Optimus Hit by China’s Rare Earth Restrictions
• Financial Times: Tesla Financials Review
• Axios: Tesla Earnings Call Insights
• Google News: Tesla earnings 2025