Elon Musk says his DOGE work will “drop significantly” starting in May

Elon Musk recently announced to Tesla investors that he will be reducing his involvement in the Trump administration’s Department of Government Efficiency (DOGE) starting in May. The initiative, aimed at cutting costs and eliminating federal jobs to reduce fraud, waste, and abuse, has faced criticism and legal challenges for accessing private voter data and cutting essential programs.

As Musk shifts his focus back to Tesla, the electric car company has seen a decline in sales, largely attributed to its association with the Trump administration. Tesla’s stock has plummeted over 50% since December, following the surge in shares post-election. Musk’s decision to scale back his work at DOGE has been well received by investors, with Tesla shares rising 4% after the announcement.

Despite Musk’s move, some analysts believe that his political activities have already damaged Tesla’s reputation. Adam Crisafulli of Vital Knowledge noted that Musk’s personal brand has been tarnished, and exiting DOGE may not be enough to repair the damage. Additionally, Tesla faces stiff competition in the EV market from domestic automakers like Ford and European rivals offering advanced technology in new models.

The challenges for Tesla extend beyond political controversies, with the company also facing obstacles in China. Tariff retaliation from China has forced Tesla to halt orders for two models, impacting its sales in the region. Chinese EV maker BYD’s development of a rapid electric battery charging system poses further competition for Tesla in the market.

Overall, Tesla’s future remains uncertain as it navigates political scrutiny, market competition, and global trade challenges. Musk’s decision to refocus on Tesla may help address some concerns, but the company will need to adapt and innovate to stay ahead in the rapidly evolving EV industry.