Tesla CEO Elon Musk said on Tuesday he would cut back significantly the time he devotes to the Trump administration from next month and spend more time running his many companies.
Musk’s involvement in the so-called Department of Government Efficiency – where he has led efforts to cut federal jobs – has become a political lightning rod, fuelling unrelenting protests and vandalism at Tesla showrooms.
Investors have raised concerns about Musk spending too little time managing Tesla, where sales have nosedived.
People protest against Tesla and Elon Musk outside of a Tesla dealership in California (Photo: : Laure Andrillon/ Reuters)“The large slog of work necessary to get the DOGE team in place and working with the government to get the financial house in order is mostly done,” Musk told analysts on a conference call. But he said he still intended to spend about 40 per cent of his time on DOGE.
Tesla shares, which had risen four per cent in after-hours trading right before an earnings conference call began, spiked to trade up 5.5 per cent on Musk’s comments. But the stock has nearly halved from its December peak.
Tariff tensions add further uncertainty. Tesla has paused some China-sourced component imports after US tariffs on the Asian country rose to 145 per cent, Reuters reported. China has responded with tariffs of its own, leading Tesla to suspend new Model S and Model X orders in the country.
Musk’s recent posts on his social media site X have suggested he is slowly re-engaging with his businesses, after spending months talking only about how he was cutting government waste.
His time away from DOGE will be split between money-maker Tesla and his other companies which include SpaceX, xAI and Neuralink.
Tesla has said it plans to release a cheaper car – seen as a key catalyst for future growth – in the first half of 2025, using existing platforms and assembly lines, after scrapping plans for a brand-new, low-cost model.
Musk said he expected millions of Teslas operating fully autonomously by the second half of next year.
With Reuters
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