Elon Musk has dropped a huge, unexpected bombshell amid concerns over Tesla’s alarming 40% stock plunge.
The tech mogul announced that he would shift his focus back to the embattled electric vehicle maker by scaling back his time at the Department of Government Efficiency (DOGE).
Musk will continue fighting government waste and fraud while addressing challenges at his flagship company, which has seen its market cap shrink by roughly $600 billion.
The billionaire made the announcement during Tesla’s earnings call, where he said he would “significantly” reduce his DOGE involvement starting in May.
At the same time, he explained that he will still dedicate “a day or two per week” to government efficiency efforts.
The announcement comes as Tesla reported disappointing first-quarter results, including a 20% decline in automotive revenue and a 71% drop in net income.
“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 explained during the call.
Since President Donald Trump appointed Musk to lead the department, DOGE claims to have identified approximately $160 billion in government waste.
Under Musk’s leadership, DOGE has implemented significant cuts to federal agencies, including the IRS, the Department of Education, and various regulatory bodies.
Musk serves as a “special government employee” with fewer conflict-of-interest requirements than traditional appointees.
He has faced criticism from the left about his dual roles. Liberal activists have organized demonstrations against Tesla, which Musk addressed directly during the earnings call.
“The protests that you’ll see out there, they’re very organized,” Musk said, suggesting they might be funded through fraudulent means, though he did not provide specific evidence.
Tesla’s challenges extend beyond political activism. The company’s U.S. market share of electric vehicles has fallen below 50% as traditional automakers like GM, Toyota, and Honda have expanded their EV offerings.
Chinese manufacturers, particularly BYD, have also emerged as strong global competitors.
“I’m a little concerned that on the leaderboard, ranked two through 10 will be Chinese companies. But I’m not worried that rank one will be Tesla,” Musk stated confidently.
Despite current headwinds, Musk remains optimistic about Tesla’s future, particularly regarding its AI technology, robotaxis, and autonomous robots.
The visionary CEO recognizes that Tesla’s long-term profitability will likely depend on these innovations, rather than relying solely on traditional vehicle sales.
The Trump administration’s partnership with Musk has already yielded results in government efficiency, with initiatives such as integrating USAID into the Department of State.
