MUSK SAYS WILL SOON REDUCE WORK FOR TRUMP AMID TESLA STRUGGLES

Wed 23 April 2025:

The billionaire, who has become a controversial figure as the head of a government efficiency advisory panel, indicated the pivot shortly after Tesla reported a steep drop in quarterly profits.

The 71 percent drop comes as protests against Elon Musk – and the companies he owns – have grown, and as the electric vehicle market has become increasingly crowded with competitors.

“Probably in the next month, my time allocation to DOGE will drop significantly,” Musk said on an earnings conference call, referring to the Department of Government Efficiency that he runs.

The DOGE initiative, a signature cost-cutting task force launched by President Donald Trump in his second term, has been credited with eliminating tens of thousands of federal jobs in a bid to reduce “fraud, waste and abuse.”

However, the program has been dogged by controversy, including multiple lawsuits and accusations that it accessed voter data and slashed essential public programs.

Despite distancing himself from DOGE, Musk made clear he’s not cutting ties entirely. “Starting next month, I’ll be allocating far more of my time to Tesla,” he added.

“But I still plan to spend one to two days a week on government issues.”

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‘Exiting DOGE won’t change that’

The news appeared to buoy Tesla’s battered stock, which jumped 4% to $247.53 after Musk’s announcement.

Still, shares remain down 41% year-to-date and have plunged over 50% from their December high, when optimism about Musk’s influence in Washington briefly boosted investor confidence.

Tesla’s Q1 earnings, released Tuesday, deepened investor unease. Revenue dropped 9%, while profits plummeted 71%, missing Wall Street forecasts. Analysts suggest the company’s woes run deeper than politics.

“Musk’s personal brand has been permanently tarnished by his political activities in the last several months, and exiting DOGE won’t change that,” wrote Adam Crisafulli of Vital Knowledge in a note to clients.

Tesla is also grappling with fierce competition in the global EV market. Rivals from Detroit to Berlin are rolling out new models with cutting-edge tech, while Chinese giant BYD has developed a battery system capable of recharging in mere minutes.

Compounding Tesla’s challenges, Chinese tariff retaliation recently forced the company to halt orders of its Model S and Model X in mainland China.

SOURCE: INDEPENDENT PRESS AND NEWS AGENCIES

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