Elon Musk Scales Back DOGE Role to Focus on Tesla Amid Profit Drop

Elon Musk announced he will significantly reduce his involvement with the Department of Government Efficiency (DOGE) starting in May to focus more on Tesla, after the company reported a sharp 71% drop in first-quarter profits amid falling sales and widespread consumer backlash to Musk's political roles. Musk acknowledged that his leadership at DOGE, a Trump administration initiative to cut government waste and fraud, has generated protests, legal challenges, and negative sentiment that have impacted Tesla sales in the U.S. and Europe. Investors and analysts have criticized Musk for being distracted by his government role, with some welcoming his renewed commitment to Tesla as a positive step. Musk plans to spend only one to two days per week on government matters going forward, maintaining some oversight to prevent the return of waste and fraud. Tesla aims to revive momentum by launching a cheaper Model Y and piloting a driverless robotaxi service later this year. Following Musk's pledge to refocus on Tesla, the company's stock saw a modest rebound in after-hours trading.