Musk Scales Back Doge Commitment as Tesla Profits Plummet

In a surprising turn of events, Tesla CEO Elon Musk announced plans to significantly cut his involvement with the newly formed Department for Government Efficiency (Doge), following a stark decline in the company's profits and sales for the early part of the year. The billionaire revealed that starting next month, he would limit his commitments to the Doge initiative to just one or two days a week. Criticism surrounding his dual focus on automotive innovation and government involvement has raised concerns about his dedication to the electric car manufacturer, which has recently experienced a 20% drop in sales and profits plunging over 70%.

Musk, who has been at the forefront of the Doge project since its inception, acknowledged the changing political landscape and its potential impact on Tesla's market performance. Accusations of diverting attention away from Tesla's operations have sparked protests against the company, contributing to a significant share value decline—approximately 37% so far this year. Despite this, Musk expressed his intention to continue serving the Trump administration, stating that his role remains "critical" and will persist as long as it's advantageous and as per the President's desire.

The financial forecast for Tesla remains grim, with fears that ongoing trade tensions, particularly with China, are jeopardizing supply chains and increasing costs. Despite these challenges, Musk defended Tesla's operational model, claiming they are least affected by tariffs due to their localized supply chains. However, he conceded that the pressures on profit margins make the landscape especially challenging. Analysts suggest that the company must navigate heightened competition and supply chain disruptions as it moves forward.