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Elon Musk to scale back role at DOGE, refocus on Tesla amid sales slump

Elon Musk to scale back role at DOGE, refocus on Tesla amid sales slump

Under pressure from Tesla shareholders and amid declining EV sales, Elon Musk says he will reduce his involvement in the Department of Government Efficiency.

Business Today Desk
Business Today Desk
  • Updated Apr 23, 2025 8:02 AM IST
Elon Musk to scale back role at DOGE, refocus on Tesla amid sales slumpesla shares rose by 4% prior to the release of the company's first-quarter report.

Elon Musk has announced he will significantly reduce his involvement in the Department of Government Efficiency (DOGE), the White House-linked project he helped launch, to refocus his attention on Tesla.

“Starting next month, I’ll be allocating far more of my time to Tesla, and now that the major work of establishing the Department of Government Efficiency is done,” Musk said during Tesla’s earnings call. He added that he would continue to “spend a day or two” each week on DOGE-related work but intends to prioritise his electric car company moving forward.

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The move comes amid growing pressure from Tesla investors, who have urged Musk to step away from the politically charged DOGE initiative and focus more on steering the company through a difficult period. Tesla is currently grappling with a sharp dip in global EV sales and mounting competition.

Musk’s role as the de facto head of DOGE has faced increasing scrutiny. The initiative, established with backing from the Trump administration, aims to streamline federal government operations and cut bureaucratic red tape. However, its partisan overtones and Musk’s own political provocations have triggered controversy.

Adding to the complexity, Musk’s advisory status under the Trump administration limited him to just 130 days in the role, raising questions about the longevity and legal footing of his involvement. A recent report by The Washington Post suggested his political influence “appears to be waning,” sparking speculation that an exit was imminent.

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Despite DOGE’s high-profile launch and Musk’s promises of sweeping reforms, the initiative has delivered few measurable outcomes. Musk’s shift back to Tesla signals a potential retreat from Washington’s policy frontlines at a time when his business empire is facing multiple challenges, from EV market saturation to increasing shareholder unrest.

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Published on: Apr 23, 2025 8:02 AM IST
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