Elon Musk announced plans to significantly reduce his involvement in the US government’s Department for Government Efficiency (Doge), following a sharp decline in Tesla’s profits and car sales. Musk, who has been heading the newly created body since last year, stated that starting next month, he will allocate only one to two days per week to Doge, despite his previously prominent role in advising on government spending and job cuts.

Challenges for Tesla
The move comes as Tesla grapples with its worst financial quarter in years. Tesla’s car sales dropped by 20% in the first quarter compared to the same period last year, and profits plummeted by over 70%. Investors were left uncertain about the company’s future, with Tesla declining to issue a growth forecast. The electric car giant also expressed concerns about the impact of “changing political sentiment” on consumer demand.

Political Tensions and Boycotts
Musk’s dual roles in both Tesla and the Trump administration have attracted controversy, with some consumers boycotting Tesla vehicles due to his political involvement. He has argued that these boycotts are fueled by efforts to attack both him and the Doge team, acknowledging the negative impact they have had on Tesla’s brand image.

Despite his decision to reduce his role in the administration, Musk emphasized that he would not completely step away from Doge, calling the work “critical” and pledging to stay on as long as it is useful to the president.

The Impact of Trade Policies
Tesla’s troubles are compounded by tariffs on Chinese goods, which affect the company’s supply chain. While Tesla assembles most of its vehicles in the US, it relies on Chinese parts for many of its cars. Musk has expressed concerns over how rapidly evolving trade policies, particularly Trump’s tariffs, could disrupt Tesla’s operations and increase costs.

Musk’s Focus Shifting Back to Tesla
With Tesla’s future at a crossroads, Musk has vowed to refocus on the company, despite acknowledging that external political challenges and trade issues could continue to pose risks to its operations.

For more details, visit BBC News.