Elon Musk reveals plans to reduce his involvement in DOGE to concentrate on struggling Tesla
WASHINGTON, DC: Elon Musk casually dropped a bombshell in the middle of a Tesla investor call on Tuesday, April 22.
The ever-controversial billionaire revealed that he's stepping back from his role as senior advisor to President Donald Trump and easing up on duties at the Department of Government Efficiency (DOGE). This comes as Tesla’s stock is getting dragged and investors are losing patience.
“I think starting next month, May, my time allocation to DOGE will drop significantly,” Musk said during the call.
He didn’t fully pull the plug on his White House ties. “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 is useful,” he explained. “But starting next month, I’ll be allocating far more of my time to Tesla.”
It seems Musk is trying to put the genie back in the bottle before Tesla’s freefall becomes a nosedive. The company's stock is already down more than 40% this year. But there was a tiny silver lining as Tesla shares ticked up a little in after-hours trading once Musk hinted he would be returning his focus to the company that made him famous, the Irish Star reported.
When politics and profits collide
The backlash isn’t just about the numbers. Elon Musk’s image has taken a beating lately, with consumers and investors turning against him for his full-throated involvement in the Trump administration.
Some Tesla investors are done biting their tongues. They have flat-out said Musk is too distracted by DOGE to run Tesla effectively, and they’re calling for him to either give up the CEO role or cut ties with Washington completely.
Seth Goldstein, a senior analyst over at Morningstar, saw it coming.
“They’re not particularly surprising given that deliveries were down,” he said of the dismal results, while noting that at least the company is still generating cash. “It was good to see positive cash flow,” he added.
And to be fair, Tesla did report $2.2 billion in operating cash, a massive leap from just $242 million this time last year.
Still, all that cash doesn’t erase the fact that this is a company in crisis. To get back on track, Tesla is banking on a few bold plays. First, there’s a cheaper Model Y SUV rumored to be dropping later this year. Then there’s the upcoming launch of a paid, fully driverless robotaxi service in Austin, Texas, set to roll out in June.
Even the margins took a hit. Tesla’s gross margins, a key profitability metric, fell to 16.3% from 17.4%. For a company that once set the gold standard for EV earnings, that’s a red flag.
The people have spoken, and Tesla’s mojo might be fading
According to the CNBC All-America Economic Survey, 47% of Americans now have a negative view of Tesla. Just 27% are still fans, while 24% are sitting on the fence.
In comparison, General Motors looks like a sweetheart—about a third of the public views it positively, with 51% feeling neutral and only 10% negative.
Musk, meanwhile, is even more polarizing than the cars he sells. Half of the public holds a negative opinion of him, while only 36% are on his side. Sixteen percent are neutral.
Among Democrats, his net approval rating is underwater by a whopping -82. Independents aren’t much better, sitting at -49. Republicans are the only group giving him a thumbs up, with a net positive rating of +56.
It's worth noting that people are loving electric vehicles more than ever, but they’re souring on Tesla itself. Micah Roberts, a partner at Public Opinion Strategies and a GOP pollster involved in the survey, commented, “Where Tesla is strongest is among the people least likely to buy an EV.”
The disconnect is staggering. Thirty-five percent of Americans hold a negative view of EVs, while 33% are positive. Men have a net positive outlook on EVs, but are split when it comes to Tesla. Young people aged 18 to 34 are +19 on EVs—but a stark -23 on Tesla.
Among Democrats, the contrast is even more brutal. They’re +20 on electric vehicles, but a devastating -74 on Tesla itself. Meanwhile, Republicans love Tesla but aren’t really sold on EVs.
You can watch the entire Tesla Q1 Earnings Call stream here:
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