Elon Musk to cut back work for DOGE under Donald Trump, give more time to Tesla
The decision comes in the backdrop of the backlash he has faced over DOGE's actions and the drop in Tesla's quarterly profits.
Elon Musk on Tuesday said that he will cut back his work for US President Donald Trump to a day or two per week from next month, allocating more time for his electric car company Tesla.
This comes in the backdrop of Tesla reporting a major drop in its first-quarter profit and the public backlash Musk has been receiving over his aggressive cost-cutting tactics at the Department of Government Efficiency (DOGE).
Musk's 130-day mandate as a special government employee in the Trump administration is set to expire around late May.
"I think starting probably next month, in May, my time allocation to DOGE will drop significantly," the Tesla CEO told investors during a conference call.
The electric car marker has faced several troubles in the past few months as deliveries of its aging lineup of electric vehicles have nosedived, with consumers opposing Trump's political activities and protesting against Tesla.
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Musk said that his major work setting up the government efficiency department initiative was done. Under his leadership and with the aim of increasing efficiency, DOGE staff overturned several federal agencies in a sweeping restructuring and also faced a series of lawsuits.
However, the Tesla and SpaceX CEO has been defending his role as an unelected official, who was granted unprecedented authority by Trump to dismantle several parts of his government.
Notably, the Austin-based Tesla on Tuesday said that its quarterly profits fell by 71 per cent to $409 million, or 12 per cents a share. In the period from January through March, the company's revenue fell 9 per cent to $19.3 billion, which was also below the forecast Wall Street made.
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Some of the company's investors have also complained that Musk has been too distracted by his role at the DOGE to effectively run Tesla.
Wedbush Securities' Dan Ives, referring to Musk's decision, said, "This is a big step in the right direction. Investors wanted to see him recommit to Tesla."
Tesla, a company that once dominated electric vehicles market, is also facing fierce competition for the first time.
