From May, Elon Musk to Scale Back Role in Trump Administration – CBS News

From May, Elon Musk to Scale Back Role in Trump Administration – CBS News
Washington, April 23, 2025

According to a CBS News report, due to Tesla’s underperformance and growing pressure from competitors, CEO Elon Musk will significantly reduce his involvement in the Trump administration’s “Department of Government Efficiency (DOGE)” task force starting in May.

Speaking during a conference call with investors on Tuesday, Musk said, “Starting next month, I’ll probably be significantly scaling back the time I dedicate to DOGE.” — as reported by CBS News.

The DOGE initiative, launched during President Donald Trump’s second term, aimed to cut government spending. It has led to the elimination of tens of thousands of federal jobs and claims to have tackled “fraud, waste, and abuse.”

However, the project has been mired in controversy, facing multiple lawsuits and accusations of voter data collection and reductions in critical public service programs.

While announcing his partial withdrawal from DOGE, Musk clarified that he is not cutting ties with the government entirely.
“I’ll now be spending much more time on Tesla,” he said. “But I’ll still dedicate one to two days a week to government-related work.”
“Even though I’m stepping back from DOGE, my participation won’t end completely.”

Following the announcement, Tesla’s struggling stock saw a slight rebound — rising 4% to $247.53. However, shares are still down 41% for the year and have fallen more than 50% from their December peak, when investors had high hopes about Musk’s influence in Washington.

Tesla’s Q1 earnings report, also released on Tuesday, added to investor concerns. Revenue fell by 9%, and profits plummeted 71%, well below Wall Street expectations.

Analysts say the problems run deeper than just politics.

In a note to clients, Adam Crisafulli of Vital Knowledge wrote, “Musk’s political involvement in recent months has done lasting damage to his personal brand, and stepping back from DOGE won’t fix that.”

Meanwhile, global competition in the electric vehicle (EV) market is intensifying. From Detroit to Berlin, companies are launching advanced new models, and Chinese giant BYD has developed a battery that can be charged in just a few minutes.

Additionally, due to China’s retaliatory tariff policies, Tesla has recently had to suspend orders for the Model S and Model X in mainland China — adding further challenges to the company’s outlook.