Tesla CEO Elon Musk said Tuesday he plans to have a reduced role as the leader of the Department of Government Efficiency (DOGE) beginning in May.
Musk, the world's richest man and a senior adviser to President Donald Trump, said he plans to devote more time to Tesla, following a steep drop in the company's first-quarter profits. The announcement comes as Musk faces mounting criticism and protests over his leadership role with DOGE.
On Tesla's earnings call, Musk stated that "my time allocation to DOGE will drop significantly," adding that the initiative is "mostly done."
Context
Tesla, headquartered in Austin, Texas, reported a 71 percent decline in quarterly profit, falling to $409 million, or 12 cents per share—well below analysts' expectations. Revenue also dropped 9 percent year-over-year, coming in at $19.3 billion for the January to March period, missing Wall Street forecasts.
What to Know
Elon Musk's leadership role with DOGE, a federal initiative aimed at reducing government spending, has ignited widespread controversy and protests. Critics argue that DOGE's aggressive cost-cutting measures have led to mass layoffs and the dismantling of essential public services, disproportionately affecting vulnerable communities.
This backlash has manifested in the "Tesla Takedown" movement, a grassroots campaign urging consumers to boycott Tesla products and divest from the company. Protests and vandalism have erupted at Tesla showrooms across the United States and internationally, with demonstrators expressing outrage over Musk's political affiliations and the perceived erosion of democratic institutions under DOGE's policies.
Earlier this month, Trump told reporters aboard Air Force One that his most powerful and disruptive adviser will likely be leaving in the near future.
Trump said "Elon is fantastic" but that he has "a number of companies to run." The billionaire entrepreneur owns Tesla, Space X and X, among others.
Earlier this month, Vice President JD Vance said that Musk will "remain a friend and an adviser" of President Trump after the Tesla CEO leaves his current role with DOGE.
Vance told Fox News that DOGE had a significant amount of work to do and would continue without Musk at some point.
Some Tesla investors have expressed concern that Musk's attention has been diverted by his leadership at DOGE, limiting his ability to effectively steer Tesla during a turbulent period.
What Elon Musk Said Today
"I'll have to continue doing it for I think the remainder of the President's term just to make sure the waste and fraud that we stopped does not come roaring back, which it will do if it has the chance."
"I think I'll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it would be useful."
"I encourage people to look beyond the bumps and potholes of the road immediately ahead of us. Lift your gaze to the bright shining citadel on the hill — I don't know, some Reagan-esque imagery — and that's where we're headed."
What Happens Next
Trump's DOGE initiative was launched via executive order on his first day back in office and is set to sunset in July 2026. After Musk's exit, Cabinet secretaries are expected to continue the department's work. "There'll be a point at which the secretaries will be able to do this work...with the scalpel, and that's what we want," Trump said earlier this month.
Reporting by the Associated Press contributed to this story.
Update: 4/22/25, 6:56 p.m. ET: This article has been updated with additional information.
